Guangdong Weekly Contract Rollover, Spot Premiums Lower [SMM Guangdong Spot Weekly Review]

In Guangdong, spot premiums adjusted down by 20 yuan/mt WoW this week, and as of Friday, mainstream 0# zinc in Guangdong was quoted at a discount of 130-85 yuan/mt against market offers. This week, Guangdong saw contract rollover quotations, and spot premiums moved lower under the contango structure. On the consumption side, the mid-week pullback in zinc prices boosted downstream purchasing enthusiasm, with increased pricing transactions; however, as zinc prices rose again, downstream wait-and-see sentiment intensified, and market transactions weakened somewhat. Looking ahead to next week, the ongoing destocking of social inventory in Guangdong, coupled with limited spot circulation of some delivery brands, provides some support to spot premiums. But given that downstream demand has not yet shown significant improvement, with zinc prices fluctuating at high levels, Guangdong spot premiums are expected to remain in a backwardation range and consolidate.