This week, Guangdong's premiums and discounts fell by about 30 yuan/mt WoW. As of Friday, mainstream #0 zinc quotations in Guangdong were at discounts of 135~105 yuan/mt against the spot market, while the Shanghai-Guangdong price spread held steady. This week, Guangdong switched to quoting against the 2512 contract following the contract rollover from the 2511 contract. Zinc prices fluctuated downward gradually during the week, but end-use consumption in Guangdong remained sluggish, with downstream purchasing interest weak and market wait-and-see sentiment strong. Meanwhile, inventory in Guangdong continued to climb to a three-year high, spot supply was ample, and the overall spot market was under pressure. As a result, traders slightly lowered premiums and discounts to boost sales, driving overall discounts lower. Looking ahead to next week, current arrivals in Guangdong are normal, but downstream purchasing and cargo pick-up momentum is weak; Guangdong's premiums and discounts are expected to remain under pressure next week.
