Guangdong Premiums Rose This Week, and Were Expected to Maintain a Fluctuating Trend Next Week [SMM Guangdong Spot Weekly Review]

This week, premiums in Guangdong rose 45 yuan/mt WoW. As of this Friday, mainstream 0# zinc quotations in Guangdong were at discounts of 20~0 yuan/mt against market quotations, and the Shanghai-Guangdong price spread narrowed. This week, the center of zinc prices moved higher. As downstream enterprises had already restocked on dips last week, their purchasing enthusiasm pulled back somewhat this week, with overall procurement mainly driven by rigid demand. Affected by rising oil prices, transportation for ex-works pickups remained relatively sluggish recently. Against this backdrop, warehouse withdrawals performed well, providing some support for spot premiums. Looking ahead to next week, as spot cargo previously price-fixed by downstream buyers has not yet been fully picked up and enterprises still hold some inventory, premiums in Guangdong are expected to maintain a fluctuating trend.