Lower prices drove an improvement in trading at the beginning of the week, with premiums and discounts rising slightly this week [SMM Guangdong Spot Weekly Review]

       This week, premiums and discounts in Guangdong rose by around 15 yuan/mt WoW. As of Friday this week, the mainstream 0# zinc quotations in Guangdong were at discounts of 120~50 yuan/mt against the market, and the Shanghai-Guangdong price spread narrowed. At the beginning of the week, the pullback in zinc prices drove an improvement in downstream procurement enthusiasm, with an increase in downstream spot purchases, leading to a slight improvement in spot trading. Subsequently, as zinc prices continued to rise, downstream buyers became cautious due to high prices, and spot transactions deteriorated. During the week, arrivals in Guangdong increased slightly MoM, while downstream consumption remained weak, with most procurement being done at lower prices. The current characteristics of the off-season in actual consumption are evident, and it is expected that premiums and discounts in Guangdong will continue to be in the doldrums next week.