Tight Spot Cargo Supply Persists, Premiums and Discounts Continue to Rise [[SMM Weekly Review of Spot Cargo in Guangdong]]

SMM News on April 30: This week, premiums and discounts in Guangdong rose by 20 yuan/mt WoW. As of Wednesday this week, the mainstream 0# zinc quotations in the Guangdong market were at premiums of 500~550 yuan/mt over the market price. The Shanghai-Guangdong price spread narrowed to 40 yuan/mt. Zinc prices maintained a fluctuating trend this week. However, due to the limited spot supply in the market and some downstream companies still needing to build inventory before the holiday, the premiums quoted by market traders were relatively high, causing spot premiums/discounts to rise. At the beginning of the week, there was still some inventory building by downstream companies in the Guangdong market. However, as time passed and the holiday approached, inventory building activities were nearing completion, and premiums and discounts in the market continued to pull back. Currently, overall arrivals in Guangdong are limited, and the tight spot supply supports premiums and discounts to fluctuate at highs. If inventory buildup in Guangdong remains limited during the holiday, it is expected that spot premiums/discounts in Guangdong will continue to hover at highs next week.

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