High Prices Suppressed Enterprises' Just-in-Time Procurement, Spot Premiums/Discounts in Guangdong Fell This Week [SMM Guangdong Spot Weekly Review]

       This week, spot premiums and discounts in Guangdong decreased by about 10 yuan/mt WoW. As of Friday, mainstream #0 zinc was quoted at a discount of 45 yuan/mt against the market, and the Shanghai-Guangdong price spread widened. During the week, zinc prices continued to rise, but downstream buyers were cautious due to high prices, resulting in sluggish market transactions. Under pressure from high prices, traders slightly lowered premiums and discounts to facilitate sales. Currently, end-users in Guangdong are purchasing mainly based on immediate demand, with limited enthusiasm for stockpiling amid high prices, which is expected to restrain further increases in premiums and discounts. However, Guangdong has been experiencing continued destocking recently. If the Shanghai-Guangdong price spread continues to widen, there is a risk of spot zinc outflow from Guangdong, which would provide some support to premiums and discounts. In the short term, spot premiums and discounts in Guangdong are expected to maintain a fluctuating trend.