End-user stockpiling combined with a lower price center drove spot premiums and discounts in Guangdong higher this week [SMM Guangdong Spot Market Weekly Review]

       This week, premiums and discounts in Guangdong increased by about 25 yuan/mt WoW. As of Friday, mainstream #0 zinc quotations in Guangdong were at discounts of 80~40 yuan/mt against the spot market, and the Shanghai-Guangdong price spread widened. At the beginning of the week, zinc prices were relatively low, and downstream buying the dip boosted trading activity. However, during the week, hindered transportation due to typhoon weather led to most enterprises suspending production to cope with the typhoon, resulting in weak supply and demand in the market and stable premiums and discounts. In the latter part of the week, with the recovery of transportation and enterprises' pre-holiday stocking demand, trading activity recovered slightly, but downstream sentiment to drive down prices persisted, and premiums and discounts only strengthened modestly. Currently, downstream purchases are mainly focused on pre-holiday rigid demand or buying the dip around price fluctuations, but the sustainability of consumption is limited. It is expected that premiums and discounts will fluctuate in the short term.