High Prices Suppress Guangdong End-Use Demand, Premiums Show Signs of Decline [SMM Guangdong Spot Cargo Weekly Review]

Premiums in Guangdong rose by about 10 yuan/mt WoW this week. As of this Friday, mainstream #0 zinc in Guangdong was quoted at a discount of 60-25 yuan/mt against the market price, with the Shanghai-Guangdong price spread widening. Although the invoice issue in the spot market remained tight this week, the sharp rise in zinc prices caused spot premiums to struggle to rise, gradually trending lower. Looking ahead to next week, based on market feedback, the invoice issue in the spot market is expected to remain tight in the short term. However, if zinc prices hover at highs around current levels, premiums are expected to still face some upward pressure, with the overall center staying in discount territory with fluctuations.