Premiums and discounts in Guangdong this week fell by about 10 yuan/mt WoW. As of Friday, mainstream #0 zinc was offered at a discount of 5 yuan/mt against the market price, and the Shanghai-Guangdong price spread narrowed. The price center of zinc rose during the week, and although downstream users engaged in some pre-holiday stockpiling, overall consumption remained mediocre. Some traders still lowered premiums slightly to facilitate transactions. Looking ahead to next week, end-user enterprises are expected to have some restocking demand, which will provide some support to premiums and discounts. Meanwhile, Guangdong's inventory is expected to fall below the 20,000 mt mark soon. If inventories continue to decline, there will be some upside room for premiums and discounts.
