End-users made just-in-time procurement, and premiums and discounts are expected to maintain fluctuating trend [SMM Guangdong Spot Cargo Weekly Review]

       Premiums and discounts in Guangdong rose by about 15 yuan/mt WoW. As of Friday, mainstream 0# zinc spot cargo was quoted at a discount of about 15 yuan/mt against the market, and the Shanghai-Guangdong price spread maintained. Guangdong inventory continued to decrease during the week, traders showed some sentiment to hold prices firm, while downstream still had rigid demand restocking, driving premiums and discounts slightly higher. Next week, the recent Shanghai-Guangdong price spread remained large, coupled with higher spot premiums and discounts in east China, spot cargo in Guangdong showed outflow tendency. Additionally, traders' sentiment to hold prices firm was relatively strong, so premiums and discounts still had support at the lower end. However, actual market consumption was still mainly rigid demand, enterprises' acceptance of high prices was expected to be limited. Guangdong discounts are expected to maintain fluctuating trend next week.