Last week, the mainstream price for 0# zinc in Guangdong was concentrated at a premium of 180-245 yuan/mt over the SHFE zinc 2309 contract, while the discounts over the Shanghai market were around 30-50 yuan/mt. There was a significant amount of delivery in the first half of the week, and there remained a high level of inventory after delivery.
At the same time, zinc prices have been volatile, and downstream enterprises hold mostly bearish views, resulting in low buying activity for spot zinc and slightly decreased inquiry sentiment. Considering the price spread between the SHFE front-month and next-month zinc contracts gradually decreasing to around 70 yuan/mt, coupled with sluggish spot trading atmosphere, the premiums showed a downward trend.
Taking into account the impact of increased imports of zinc on the market, it is expected that there will be some further downward pressure on spot premiums this week.
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