Guangdong’s premium for mainstream #0 zinc rose by 20 yuan per metric ton over the week, reaching 20-40 yuan per ton above the market by Friday. The increase came as the broader zinc price center moved lower and traders became more willing to sell spot cargoes.
Lower prices encouraged downstream companies in Guangdong to buy on dips. That lifted spot transactions and accelerated the circulation of available material, supporting the regional premium even as the underlying price weakened.
The week’s buying was partly linked to point-price stockpiling already completed by downstream companies. With some immediate replenishment needs covered, spot purchasing demand is expected to soften marginally next week, leaving Guangdong premiums likely to move sideways within a range.
The regional market has recently shown how quickly lower prices can draw buyers back into the physical market. In earlier weakness, Guangdong spot zinc traded at a discount after a contract rollover as inventories rose and arrivals increased, while moderate end-use demand limited support for premiums. The current move into positive premiums therefore reflects the week’s stronger dip-buying and cargo turnover rather than a confirmed shift in longer-term demand.