[Lead-Zinc Ore Market Dynamics] Recently, Yunnan Chihong Zn & Ge Co., Ltd. responded to investor questions on an interactive platform, stating that the company is proceeding in an orderly manner with the third-phase exploration and boundary delineation exploration of the Xidong lead-zinc mine. The mining permit application and plan optimization for the Jinxin molybdenum mine are being actively advanced, and the matter has received great attention from leaders at the Ministry of Natural Resources and relevant authorities in Heilongjiang and Inner Mongolia.

[Lead-Zinc Ore Market Dynamics] According to information from the National Intellectual Property Administration, Yunnan Chihong Zn & Ge Co., Ltd. and the Institute of Resources Utilization and Rare Earth Development of Guangdong Academy of Sciences filed a patent application titled "A Clean Beneficiation Method for High-Copper Complex Copper-Lead-Zinc Ore." The publication number is CN121945277A, and the application number is CN202610289146.5.

[Yunnan Chihong Zn & Ge Co., Ltd. 2026 Q1 Report Released] On April 29, Yunnan Chihong Zn & Ge Co., Ltd. released its 2026 Q1 report. The report showed that in 2026 Q1, the company's production included lead concentrates (16,600 mt in metal content), zinc concentrates (53,000 mt in metal content), lead products (42,900 mt), zinc ingot (74,400 mt), zinc alloy (65,100 mt), germanium products containing 15.73 mt of germanium, silver products (96 mt), and gold (201.42 kg).

Recently, Yunnan Chihong Zn & Ge Co., Ltd. released its 2025 annual report. The report showed that in 2025, the company's production included zinc concentrates (213,200 mt in metal content), lead concentrates (81,700 mt in metal content), zinc ingot (291,400 mt), and zinc alloy (233,400 mt).

[Mining and Metallurgical Enterprise Dynamics] According to Yunnan Chihong Zn & Ge Co., Ltd. (600497), during the Chinese New Year, while families across the country were reuniting, the company's production units nationwide remained busy. Many employees at operations such as Yongchang Lead-Zinc, Hulunbuir Chihong, Huize Mining and Smelting chose to stay at their posts, ensuring safe and stable production during the holiday at high-altitude snowy regions, underground mines thousands of meters deep, beside smelting furnaces, and project sites.

[Lead Smelter Updates] Recently, Yunnan Chihong Zn & Ge Co., Ltd. (600497) stated on an interactive platform that the company primarily focuses on the extraction, enrichment, and efficient recovery technologies of germanium resources associated with lead-zinc mines. By deepening strategic collaboration with its joint venture Chalco Qianxing (Chengdu) Technology Co., Ltd., it continues to provide stable, high-quality germanium raw material supplies. The processing of the mining license and project design optimization for the Jinxin Molybdenum Mine are progressing in an orderly manner. The Huize Mining Mine Plant has not implemented a deep expansion project; instead, it is advancing the optimization of its deep safety system, which is expected to be completed by the end of 2026.

[Lead Smelter Updates] Recently, Yunnan Chihong Zn & Ge Co., Ltd. (600497) responded to investor inquiries on an interactive platform, stating that the Huize mine is currently operating normally. After the completion of the Huize mine safety optimization project, the mine will resume its existing capacity release. The Hulunbuir Chihong rare and precious metals project has already commenced production, with an annual capacity of 380 mt of silver. The Yunnan Chihong comprehensive utilization of resources rare and precious metals project and the zinc alloy capacity expansion project are still in the preliminary planning stage, and whether these projects will ultimately proceed to construction remains uncertain.

[Lead Smelting Enterprise Dynamics] Recently, Yunnan Chihong Zn & Ge Co., Ltd. announced plans to increase capital in its wholly-owned subsidiary, Hulunbuir Chihong Mining Co., Ltd., by 3.3 billion yuan using its own funds. This capital injection will primarily be used to repay internal loans, supplement working capital, and fund projects aimed at enhancing efficiency and unlocking potential in lead and zinc smelting operations.

[Lead Smelter Dynamics] Today, Yunnan Chihong Zn & Ge Co., Ltd. (600497) responded to investor inquiries on the interactive platform, stating that the company's Hulunbuir Chihong Precious Metals Comprehensive Recovery Project was completed in September 2025 and commenced production in January 2026, while the Chihong Resource Comprehensive Utilization Precious Metals Upgrade Project is still in the preliminary planning stage. As of now, Jinding Zinc Industry and Yuntong Zinc Industry have not yet met the conditions for injection into the publicly listed firm, and efforts are currently being accelerated to resolve the issues affecting the injection.

Futures: Overnight, LME lead opened at $2,067.5/mt. During the Asian session, it touched a low of $2,062.5/mt and then fluctuated upward. Entering the European session, boosted by optimism over a potential end to the US government shutdown and LME lead destocking, LME lead maintained a firm upward trend, hitting a high of $2,097/mt, and finally closed at $2,093/mt, up $25/mt or 1.21%, marking a five-day winning streak. Overnight, the most-traded SHFE lead 2512 contract opened at 17,605 yuan/mt. At the beginning of the session, it touched a low of 17,575 yuan/mt. Subsequently, due to short-covering, SHFE lead fluctuated upward, reaching a high of 17,730 yuan/mt, and finally closed at 17,715 yuan/mt, up 140 yuan/mt or 0.80%, recording a two-day winning streak, but remained under pressure near the upper Bollinger Band. On the macro front: US House Majority Leader Scalise revealed that the House will hold a full vote on a bill to end the government shutdown at 8:00 Beijing Time on the 13th. Atlanta Fed President Bostic unexpectedly announced his retirement effective February next year, and reiterated his hawkish stance hours later. The market is optimistic about a dovish successor under the Trump administration. Chinese Vice Premier He Lifeng met with leaders of the National Committee on US-China Relations, stating that China and the US should jointly maintain and implement the important consensuses and outcomes of the leaders' meeting, and promote the stable development of China-US economic and trade relations. China Securities Regulatory Commission: Overseas investors hold A-shares with a market value exceeding 3.5 trillion yuan. : In the Shanghai market, Chihong Zn & Ge lead was offered at 17,505-17,585 yuan/mt, at a premium of 0-50 yuan/mt against the SHFE lead 2512 contract. As SHFE lead continued to consolidate at high levels, warrant cargo offers in the Jiangsu, Zhejiang, and Shanghai markets were scarce, with some still quoted at a premium and others awaiting delivery. Meanwhile, primary lead cargoes self-picked up from the production site were quoted at a small premium. However, downstream enterprises showed limited inquiry enthusiasm, with only some making just-in-time procurement, leading to thin trading in the spot market. Offers for spot orders of secondary refined lead changed little, and suppliers' willingness to sell was moderate. The mainstream prices for spot orders were at a discount of 50-0 yuan/mt against the SMM #1 lead average price, with some cargoes from remote areas at a discount of 100 yuan/mt. The mainstream ex-factory offers excluding tax were 15,950-16,050 yuan/mt. Inventory: On November 12, LME lead inventory decreased by 1,500 mt to 225,225 mt. According to SMM, as of November 10, the total social inventory of lead ingots across five regions tracked by SMM reached 32,700 mt, up 2,500 mt from November 3 and increasing by over 900 mt from November 6. Today's lead price forecast: This week is the week before the SHFE lead delivery, during which invisible inventory is expected to transform into visible inventory. Secondary lead smelters are ramping up production after resuming operations, and spot order supply is gradually increasing; additionally, imported lead negotiated last month is arriving at ports successively, leading to a gradual easing of lead ingot supply in the short term. The off-season for two-wheeled e-bike lead-acid battery consumption has arrived, with downstream operating rates declining. Currently, the SMM lead-acid battery weekly operating rate fluctuates below 70%. Downstream demand is gradually weakening, and recently, lead-acid battery producers have shown low purchase willingness for lead ingot spot orders, only maintaining essential restocking. Overall, there are multiple bearish factors for lead prices, warranting caution against the drag from fundamentals on lead prices. Data Source Statement: Except for publicly available information, other data are processed by SMM based on public information, market communication, and SMM's internal database model, for reference only and not constituting decision-making advice.