Weak Consumption Coupled with Ample Spot Supply, Guangdong Premiums and Discounts Continue to Decline [SMM Guangdong Spot Market Weekly Review]

       This week, Guangdong premiums and discounts fell by about 25 yuan/mt WoW. As of Friday, mainstream #0 zinc quotations in Guangdong were at discounts of 145~105 yuan/mt against the market, and the Shanghai-Guangdong price spread widened. During the week, supply in the Guangdong market was ample, while downstream consumption showed mediocre performance. Traders faced significant pressure to sell, and spot discounts continued to weaken. At the same time, amid weak transactions and low premiums, the proportion of spot deliveries in Guangdong has been rising recently. Overall, the market continues to see strong supply and weak demand. Downstream users are highly sensitive to zinc prices and procure cautiously, keeping the spot market under pressure. In the short term, spot discounts in Guangdong are expected to remain in the doldrums.