Guangdong premiums fell WoW by 30 yuan/mt this week. As of Thursday, mainstream #0 zinc in Guangdong was quoted at a discount of 90-70 yuan/mt against the market, and the Shanghai-Guangdong price spread widened. At the beginning of the week, Guangdong saw contract rollover quotations, and the discount widened under the contango structure. Meanwhile, the zinc price center fluctuated at highs, with end-user procurement mostly based on rigid demand. Traders quoted higher prices due to procurement costs, which provided some support at the bottom of premiums. However, constrained by weak end-use consumption and expectations of increased arrivals later, premiums are expected to remain in discount territory.
