During the week, the zinc ingot market in Guangdong underwent a contract rollover, with spot quotations officially switching from the 2603 contract to the 2604 contract. Against the backdrop of the SHFE zinc market maintaining a Contango structure, spot premiums and discounts for zinc ingots in Guangdong continued their downward trend after the rollover, further declining from -80 yuan/mt before the rollover to -125 yuan/mt today, highlighting persistent short-term downward pressure.

[SMM Zinc Morning Comment: SHFE Zinc Closed for Chinese New Year Holiday, Focus on Inventory Buildup During the Holiday] Overnight, LME zinc opened at $3,383/mt, and after opening, it fluctuated around the daily average line, reaching a high of $3,392/mt during the session. Subsequently, LME zinc experienced a pullback in the night session, failing to surge again after another attempt, and by the end of the session, it touched a low of $3,341.5/mt.

During the Chinese New Year break, LME zinc's price center first declined and then rose. The 40-day moving average consistently supported the daily candlestick of LME zinc. After opening, the price center of LME zinc pulled back, hitting a low of $3,253/mt before rebounding steadily. Overall, the price center recovered, and as of Friday's close, LME zinc settled at $3,378/mt, up $35.5/mt for the week, a gain of 1.06%.

[Zinc Price "Year-End Hurdle": Pre-Holiday Hedging and Post-Holiday Pace Management Suggestions]With the 2026 Chinese New Year approaching and the last trading week before the holiday, SMM has summarized several key points to focus on in the zinc market before and after the holiday:

[Ningbo Refined Zinc Market] During the week, spot supply in the Ningbo market was gradually consumed, traders reduced spot quotations, and spot premiums edged up. However, with futures maintaining a fluctuating trend throughout the week, downstream users mostly purchased as needed, resulting in overall spot trades being mediocre.

[SMM Flash News] This week, the SHFE/LME zinc price ratio fluctuated around 8.4, with the import window for zinc ingots remaining closed. Overseas, macro data showed a slowdown in both US employment and inflation, strengthening expectations for US Fed interest rate cuts within the year. The escalation of tensions in the Middle East exacerbated geopolitical risks, and the resurgence of US tariff disputes put continuous downward pressure on LME zinc.