Zinc Prices Fell During the Week, While Guangdong Spot Premiums Rose [SMM Guangdong Spot Weekly Review]

       This week, spot premiums in Guangdong rose 20 yuan/mt WoW. As of Friday this week, mainstream 0# zinc quotes in Guangdong were at discounts of 0 to premiums of 40 yuan/mt against the market, and the Shanghai-Guangdong price spread continued to widen. During the week, the center of zinc prices moved lower, driving galvanizing and alloy enterprises in Guangdong to restock on dips, with spot premiums rising accordingly. Recently, freight rates in Guangxi and Yunnan increased, hindering ex-factory shipments of spot cargo for some brands, and traders' quotations were relatively high; together with the gradual recovery in downstream demand, this supported premiums. Looking ahead to next week, freight pressure and downstream restocking demand in the short term will support a rise in Guangdong zinc spot premiums, though attention should be paid to the sustainability of downstream demand and subsequent arrivals in Guangdong.