Downstream consumption is weak, and the premium in Guangdong has dropped significantly during the week [SMM Guangdong Spot Cargo Weekly Review]

This week, premiums and discounts in Guangdong region saw a significant decline, dropping by approximately 140 yuan/mt WoW. As of Friday this week, the mainstream 0# zinc quotations in the Guangdong market were at premiums of 75~105 yuan/mt against the market, and the Shanghai-Guangdong price spread narrowed. This week, the center of zinc prices continued to rise, and downstream fear of high prices became increasingly evident. Meanwhile, affected by the current weakening downstream consumption, enterprises' procurement demand was low. Under these circumstances, traders continuously lowered premiums to facilitate sales. Additionally, the price spread between futures contracts contracted sharply during the week, both of which jointly drove premiums and discounts lower. Currently, downstream consumption as a whole is relatively sluggish, and it is expected to remain in the doldrums next week.

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