Continuous destocking in Guangdong region, spot premiums/discounts rise [SMM Guangdong Spot Cargo Weekly Review]

       This week, spot premiums/discounts in Guangdong rose by around 15 yuan/mt MoM. As of Friday, mainstream 0# zinc was quoted at a premium of 20 yuan/mt against the market, and the Shanghai-Guangdong price spread narrowed. During the week, the price center of zinc quickly moved above the 24,000 yuan/mt mark, with high prices significantly suppressing downstream procurement. Enterprises showed weak stockpiling willingness, and purchases were mainly for rigid demand. Coupled with the high Shanghai-Guangdong price spread, spot zinc resources from South China continued to flow into the East China market, putting Guangdong inventory under pressure and providing strong support for spot premiums/discounts. Looking ahead to next week, current market demand is still dominated by rigid demand, and some small and medium-sized downstream enterprises are affected by high zinc prices, with plans for early holidays already announced. However, supported by inventory in transit, zinc spot premiums/discounts in Guangdong are expected to maintain small premiums and move sideways.