[SMM Daily Comment: Silver Prices Rebounded Slightly, Month-End Trading Sluggish] SMM reported on May 25 that easing macro sentiment drove silver prices to rebound, spot discounts narrowed, but month-end buying and selling were inactive, and trading remained sluggish.

[SMM Precious Metals Market Flash] On Monday (May 25), at the opening of Asian markets, precious metals prices opened significantly higher with a gap. According to media reports outside China, the US and Iran were gradually moving closer to reaching an agreement that would facilitate the reopening of the Strait of Hormuz. Influenced by this development, market concerns over inflation eased, driving precious metals higher.

[Weakening Consumption, Declining Operating Rates of Galvanising Producers]: The operating rate of the galvanizing industry was 59.82% this week, down 0.37 percentage points WoW. Raw material side, zinc prices fluctuated at highs this week. Downstream buyers restocked on dips for rigid demand only, without large-scale stockpiling. Zinc ingot inventory of galvanising enterprises edged up.

[SMM Zinc Morning Comment: LME Decline Drags Down SHFE, SHFE Zinc Center Shifts Lower] Overnight, the most-traded SHFE zinc 2607 contract opened at 24,755 yuan/mt. After the opening, SHFE zinc fluctuated below the daily average line, touching a high of 24,785 yuan/mt early in the session and a low of 24,610 yuan/mt during the session, ultimately closing down at 24,665 yuan/mt, falling 140 yuan/mt.

On May 18, 2026, iron ore futures trended weaker today. The most-traded contract I2609 closed at 803 yuan/mt, down 1.11% from the previous trading session. Port spot prices were 2-4 yuan higher than the previous day. Traders showed moderate enthusiasm in offering quotes; steel mill purchases were mostly driven by rigid demand; overall spot trading sentiment was lukewarm. Last week, SMM global iron ore shipments totaled 30.922 million mt, up 5.48% WoW. Among them, Australian shipments were basically stable, while Brazil's shipments rebounded significantly. In addition, last week, total iron ore arrivals at Chinese ports reached 25.9288 million mt, up 5% WoW and up 6.28% YoY on a cumulative basis. Iron ore fundamentals continued last week's pattern. Supply side, as mainstream mines accelerated shipments in Q2, there were signs of entering a loosening channel again. However, demand side, blast furnace operating rates remained at relatively high levels, ensuring rigid demand for iron ore. Therefore, iron ore's upside was relatively limited, but price support remained generally solid. On the macro front, coking coal and coke prices fell on futures due to policy shifts, dragging overall ferrous metals prices weaker. However, given that iron ore's own fundamental price support remained relatively firm, ore prices are expected to resume fluctuating at highs after a brief pullback this week. [SMM Steel]

[Galvanizing Plants All Resumed Operations, Operating Rates Rose Sharply]: The operating rates of galvanising producers stood at 60.19% this week, up 12.43 percentage points WoW. Raw material side, zinc prices surged this week, downstream purchase willingness remained low, and zinc ingot inventory at galvanising enterprises declined notably.