Downstream demand is mainly driven by just-in-time procurement, with premiums and discounts in Guangdong declining [SMM Guangdong Spot Weekly Review]

SMM News on May 16: This week, premiums and discounts in Guangdong region plummeted, decreasing by 190 yuan/mt WoW. As of Friday this week, the mainstream 0# zinc quotations in the Guangdong market were at premiums of 255~275 yuan/mt over the market, and the Shanghai-Guangdong price spread widened. This week, the center of zinc prices continued to rise, and downstream fear of high prices emerged. Coupled with the fact that spot premiums/discounts remained at a relatively high level, the purchase willingness of enterprises continued to weaken. Some enterprises that had purchased at low prices in the early stage picked up goods successively this week. Meanwhile, many enterprises in the market also focused on consuming their original inventory during the week. Therefore, amid weak trading, spot premiums/discounts in Guangdong continued to decline during the week.

                                                                                                                                                》Click to view the SMM Metal Industry Chain Database