According to data from China Customs, in January-May 2026, China’s combined imports of refined lead and lead products totaled 248,443 mt, surging 291.06% YoY on a cumulative basis. The import window was wide open for most of H1, and overseas cargoes kept pouring in. Total imports had already exceeded the full-year 2025 level. On the export side, combined exports of refined lead and lead products in January-May amounted to only 20,197 mt, down 32.49% YoY, remaining at low levels.

[Shanghai Refined Zinc Market] Spot discounts for zinc ingot in Shanghai narrowed gradually this week. As SHFE zinc prices fell to lower levels, downstream enterprises showed strong buying sentiment and actively made purchases at favorable price points. Spot transactions in the Shanghai market improved significantly, driving zinc ingot premiums higher.

In North China, spot #1 copper cathode was quoted at an average discount of 170 yuan/mt to 110 yuan/mt against the front-month contract, with an average discount of 140 yuan/mt, up 30 yuan/mt from the previous trading day. The average transaction price was 101,435 yuan/mt, up 495 yuan/mt from the previous trading day.

SMM Morning Meeting Summary: Overnight, LME copper opened at $13,231.5/mt, edged up to $13,308/mt in early trading, then drifted lower to touch a low of $13,190/mt, and finally closed at a high of $13,316/mt, up 2.22%. Trading volume was 26,000 lots, and open interest was 248,000 lots, up 306 lots from the previous trading day, indicating that bulls added positions. Overnight, the most-traded SHFE copper 2608 contract opened at 102,180 yuan/mt, edged up to 102,600 yuan/mt, then drifted lower to touch a low of 101,640 yuan/mt, and closed at 102,260 yuan/mt, up 1.03%. Trading volume was 55,000 lots, and open interest was 162,000 lots, down 2,799 lots from the previous session, indicating that bears reduced positions. On the macro front, US PCE data largely met expectations, and the US dollar index halted its three-day rally. Geopolitically, another vessel attack occurred in the Strait of Hormuz; Iran warned that unauthorized transits are "unacceptable," and Israel denied withdrawing troops from southern Lebanon, which heightened Middle East tensions again and pushed geopolitical risk premiums higher. These factors eased rate hike concerns, and the US dollar stopped rising and pulled back, helping copper prices stabilize and rebound.

In North China, #1 copper cathode spot prices against the front-month contract were reported at discounts ranging from 210 yuan/mt to 130 yuan/mt, with an average discount of 170 yuan/mt, up 40 yuan/mt from the previous trading day. The average transaction price was 100,940 yuan/mt, down 2,050 yuan/mt from the previous trading day.

Looking ahead to tomorrow, copper prices pulled back in the night session yesterday, prompting some downstream enterprises to actively buy the dip. Intraday purchasing demand increased significantly. After low-priced cargoes were quickly absorbed, suppliers began to show a willingness to hold prices firm, and subsequently, the momentum for selling at low prices weakened. Regarding market structure, the inter-month price spread has shifted into a backwardation structure, reducing the willingness to sell at low prices and providing support for spot discounts. On the supply side, the import window briefly opened during the night session, and additional supply from outside China may follow. Overall, with support from the backwardation structure and downstream dip-buying, Shanghai spot copper quotes against the SHFE copper 2607 contract are expected to remain at discounts tomorrow, with the discount possibly narrowing slightly.