[SMM Flash] This week, premiums and discounts in the Guangdong region decreased by about 55 yuan/mt compared to pre-holiday levels. As of this Friday, the mainstream 0# zinc was quoted at a discount of 125 yuan/mt in Guangdong, and the Shanghai-Guangdong price spread narrowed.

During the week, the zinc ingot market in Guangdong underwent a contract rollover, with spot quotations officially switching from the 2603 contract to the 2604 contract. Against the backdrop of the SHFE zinc market maintaining a Contango structure, spot premiums and discounts for zinc ingots in Guangdong continued their downward trend after the rollover, further declining from -80 yuan/mt before the rollover to -125 yuan/mt today, highlighting persistent short-term downward pressure.

[SMM News] This week, premiums and discounts in Guangdong continued to decline, falling by 110 yuan/mt WoW. As of Friday this week, the mainstream 0# zinc quotations in the Guangdong market were at premiums of 265~300 yuan/mt against the market. The Shanghai-Guangdong price spread widened. At the beginning of the week, there was a large amount of spot cargo circulating in the Guangdong market, but under the relatively weak downstream demand, spot premiums fell. Subsequently, the futures market rapidly declined, breaking below 22,000 yuan/mt. Downstream enterprises restocked at lower prices. Although traders raised their premium quotations, downstream purchase willingness remained low amid high premiums, and spot premiums showed a downward trend. Next week, Guangdong will undergo contract rollover for delivery, with the contract changing from the 2507 contract to the 2508 contract. Currently, downstream consumption has entered the seasonal off-season. Meanwhile, under the expectation of a backwardation structure and the continuous release of production from some smelters, Guangdong premiums are expected to pull back after rising.

[SMM Flash News] This week, premiums and discounts in Guangdong rose, increasing by approximately 105 yuan/mt WoW. As of Friday this week, the mainstream 0# zinc quotations in the Guangdong market were at premiums of 500~560 yuan/mt against the market, and the Shanghai-Guangdong price spread widened. The center of zinc prices rose slightly WoW this week. Most downstream enterprises continued to adopt a wait-and-see attitude, implementing small-scale procurement and continuously depleting their inventory for long-term contracts. Meanwhile, influenced by the news of extended maintenance at smelters in South China during the week, the market was relatively concerned about subsequent spot supply. Under these circumstances, traders were reluctant to sell spot cargo, and reluctance to budge on prices grew stronger, pushing up the spot premiums/discounts in Guangdong.

[SMM Flash News] This week, premiums and discounts in Guangdong rose, increasing by approximately 105 yuan/mt WoW. As of Friday this week, the mainstream 0# zinc quotations in the Guangdong market were at premiums of 500~560 yuan/mt against the market, and the Shanghai-Guangdong price spread widened. The center of zinc prices rose slightly WoW this week. Most downstream enterprises continued to adopt a wait-and-see attitude, implementing small-scale procurement and continuously depleting their inventory for long-term contracts. Meanwhile, influenced by the news of extended maintenance at smelters in South China during the week, the market was relatively concerned about subsequent spot supply. Under these circumstances, traders were reluctant to sell spot cargo, and reluctance to budge on prices grew stronger, pushing up the spot premiums/discounts in Guangdong.

[SMM Flash News] This week, premiums and discounts in Guangdong region edged up slightly, rising by approximately 15 yuan/mt WoW. As of Friday this week, the mainstream 0# zinc quotations in the Guangdong market were at premiums of 350~390 yuan/mt against the market. The Shanghai-Guangdong price spread narrowed. This week, zinc prices maintained a fluctuating trend. Early in the week, the center of zinc prices declined slightly, with downstream buyers showing high purchasing sentiment. Subsequently, although zinc prices rose, spot trades remained active due to the bullish outlook on zinc prices among some downstream buyers. Meanwhile, some brands in the Guangdong market had fewer arrivals this week. Under such circumstances, traders offered higher premiums and discounts, driving the increase in premiums this week. Trading sentiment in the market waned towards the end of the week, with spot premiums edging down slightly. With the gradual resumption of production at smelters, it is expected that premiums and discounts in Guangdong may edge down slightly next week.