Guangdong Premiums Declined, Attention on Subsequent Consumption Changes [SMM Guangdong Spot Weekly Review]

       This week, premiums in Guangdong fell by about 5 yuan/mt WoW. As of this Friday, mainstream offers for 0# zinc in Guangdong were at a discount of 100 yuan/mt, and the Shanghai-Guangdong price spread narrowed. After the Lantern Festival, downstream players in Guangdong gradually resumed operations and production, but zinc prices still hovered at highs in the first half of the week; premiums struggled to rise and fluctuated at lows. Toward the end of the week, a marked decline in zinc prices boosted trading activity in the Guangdong market. Looking ahead to next week, although downstream operating rates are expected to continue improving, a substantive recovery in consumption will still take time. Coupled with relatively ample spot supply in Guangdong, Guangdong premiums are expected to remain fluctuating at discounts next week. Key attention should be paid to marginal changes in the pace of downstream consumption recovery.