Premiums in the Guangdong region fell 20 yuan/mt WoW this week. As of this Friday, mainstream #0 zinc in Guangdong was quoted at discounts of 100–80 yuan/mt against the market, while the Shanghai-Guangdong price spread widened. The zinc price center moved higher this week, which significantly dampened downstream purchase willingness. Combined with overall sluggish end-use consumption, the market trading atmosphere was thin. Spot cargo came under pressure, driving premiums persistently weaker. Looking ahead to next week, end-use demand is expected to remain subdued, with enterprises showing weak demand for stockpiling and cargo pick-up. Meanwhile, spot inventory currently circulating in the market is relatively ample, so there is still considerable pressure on the upside for premiums. Additionally, Guangdong will switch to contract rollover quotes next week, and premiums are expected to continue trending downward under the contango structure. Attention should be paid to regional inventory performance and the opening and closing of the export window.
