This week, spot premiums/discounts in Guangdong decreased by about 5 yuan/mt WoW. As of Friday, mainstream 0# zinc quotations in Guangdong were at discounts of 100~50 yuan/mt against the market, while the Shanghai-Guangdong price spread remained flat. Zinc prices rose significantly this week, dampening downstream purchasing enthusiasm, and spot premiums/discounts continued to fluctuate at lows. Recently, some traders in Guangdong engaged in small export volumes, coupled with a WoW decline in arrivals, leading to a drop in inventory this week. However, actual downstream consumption remained relatively subdued, with Guangdong end-users showing low willingness to purchase zinc ingots via spot orders. Support for premiums/discounts is expected to be limited. Market participants will monitor export conditions and downstream consumption trends moving forward. Guangdong spot premiums/discounts are forecast to maintain a fluctuating trend next week.
