The spot supply in the market remained ample, while the premiums and discounts in Guangdong continued to be under pressure. [SMM Guangdong Spot Cargo Weekly Review]

       This week, spot premiums/discounts in Guangdong dropped by around 10 yuan/mt WoW. As of Friday, mainstream #0 zinc quotations in Guangdong were at discounts of 105~45 yuan/mt against the market, with the Shanghai-Guangdong price spread widening. Trading in the Guangdong spot market remained sluggish overall this week, as price fluctuations dictated the procurement pace. Early in the week, the sharp rise in zinc prices significantly dampened downstream purchases, with little willingness to chase higher prices, resulting in sluggish transactions. Mid-week, the pullback in zinc prices stimulated some restocking for rigid demand, narrowing discounts slightly, but ample spot supply limited the rebound. Approaching the weekend, zinc prices rebounded again, and the market returned to a wait-and-see stance, with discounts weakening further under traders' selling pressure. Currently, spot supply in Guangdong remains abundant, while downstream demand shows no significant improvement. Oversupply continues to weigh on spot premiums/discounts, keeping them in the doldrums. Next week, Guangdong's premiums/discounts are expected to remain in the doldrums.