This week, premiums and discounts in the Guangdong region were basically flat compared to last week. As of this Friday, mainstream 0# zinc quotations in the Guangdong region were at discounts of 120~80 yuan/mt against the market, with the Shanghai-Guangdong price spread remaining unchanged. The center of zinc prices moved higher MoM, while downstream procurement enthusiasm was rather mediocre, mostly involving just-in-time procurement or gradually withdrawing goods booked at lower prices earlier. Coupled with some end-users receiving long-term contract deliveries for next month, these factors led to relatively mediocre spot transactions, although trading among traders remained relatively active. Overall, the current spot cargo circulation in the Guangdong market is still quite sufficient, but there is insufficient downstream procurement enthusiasm. It is expected that spot premiums and discounts will remain under pressure and fluctuate at lows. Attention should be paid to the subsequent inventory performance in the Guangdong region.
