Spot Market Was Sluggish During the Week, and Premiums and Discounts Continued to Decline This Week [SMM Guangdong Spot Cargo Weekly Review]

       Premiums and discounts in Guangdong this week fell by about 20 yuan/mt WoW. As of Friday, mainstream Grade 0 zinc was quoted at a discount of 65 yuan/mt in Guangdong, while the Shanghai-Guangdong price spread held steady. Zinc prices continued to fluctuate at highs during the week, and coupled with end-user holidays, weakening demand drove premiums and discounts lower. The market is currently in a Contango structure; Guangdong will switch to contract rollover pricing after the holiday, and due to this, premiums and discounts in Guangdong are expected to remain in discount territory post-holiday. Post-holiday consumption recovery will be closely watched.