This week, the premiums and discounts in Guangdong rose by about 20 yuan/mt WoW. As of Friday, the mainstream 0# zinc was quoted at a premium of 0 yuan/mt against the market, and the Shanghai-Guangdong price spread remained stable. Recent continued destocking in Guangdong led to a gradual increase in market premiums and discounts; meanwhile, the decline in zinc prices slightly boosted downstream procurement enthusiasm. The Shanghai-Guangdong price spread is gradually narrowing, correspondingly reducing inter-regional trade opportunities and tightening the spot outflow window from Guangdong. However, current downstream consumption in Guangdong is generally mediocre, providing insufficient support for further rises in premiums and discounts. Monitor subsequent arrivals in Guangdong and the downstream procurement pace; the premiums and discounts for zinc ingots in Guangdong are expected to maintain a fluctuating trend next week.
