Fewer Traders Making Shipments, Spot Premiums in Guangdong Rise [SMM Guangdong Spot Weekly Review]

Premiums in Guangdong rose approximately 30 yuan/mt WoW this week. As of this Friday, mainstream 0# zinc in Guangdong was quoted at a discount of 30-20 yuan/mt against the market, with the Shanghai-Guangdong price spread maintained. After the holiday, zinc prices stayed high, and downstream fear of high prices emerged. Procurement mostly remained on a just-needed basis, but fewer traders were making shipments in the market recently. Trading activity pulled back, and traders offering shipments quoted relatively firmly, supporting spot premiums to rise. Looking ahead to next week, spot market trading activity is currently ordinary due to invoice issues. Traders offering shipments are quoting relatively high, and short-term premium floors are expected to still have some support.