Downstream Sentiment Turns Cautious as Guangdong Premium Slightly Declines [SMM Guangdong Spot Weekly Review]

SMM, December 27: This week, spot premiums in the Guangdong region declined, with the weekly average price down 10 yuan/mt WoW. As of Thursday, mainstream quotations for 0# zinc ingots in the Guangdong market were quoted at premiums of 420~545 yuan/mt against the 2,502 contract, and the Shanghai-Guangdong price spread widened to 90 yuan/mt. Zinc prices rose significantly during the week, and most downstream enterprises had already restocked at lower prices earlier. Facing high prices, a sentiment of price aversion emerged, and market transactions were mainly based on just-in-time procurement. Currently, the spot supply in the market remains tight, but downstream consumption at high price levels is also relatively moderate, with overall conditions being relatively normal. As the domestic tight spot supply eases, spot premiums in Guangdong are expected to decline next week. Click here to view the SMM Metal Industry Chain Database.