This week, premiums and discounts in Guangdong fell by around 10 yuan/mt WoW. As of Friday, mainstream 0# zinc quotations in Guangdong were at discounts of 80~50 yuan/mt against the market, with the Shanghai-Guangdong price spread narrowing. Early in the week, rising zinc prices dampened downstream purchase willingness, resulting in sluggish transactions. Mid-week, the pullback in zinc prices prompted some companies to stockpile at lower levels, but ample spot supply limited the upside for premiums and discounts. Approaching the weekend, zinc prices fluctuated, downstream procurement enthusiasm waned, and month-end trade shipments declined, leading to overall subdued market activity and gradually widening spot discounts. Overall, downstream sectors remained highly price-sensitive, with consumption driven mainly by rigid demand or opportunistic restocking. Coupled with inventory at high levels, the spot market remained under pressure, and premiums and discounts are expected to stay in the doldrums next week.
