[How Should Zinc Consumption Be Viewed Against the Backdrop of Geopolitical Conflicts?] Q1 2026 had passed, and the overall recovery in post-holiday consumption was somewhat delayed. How would consumption perform going forward?

[Zinc Concentrate Tender] According to SMM, a mine in Southwest China recently set the April tender price for zinc concentrates at nearly 1,400 yuan/mt in metal content, self pick-up at the mine, down by no more than 100 yuan/mt in metal content MoM. SMM will continue to monitor subsequent changes in TCs.

On April 2, 2026, LME zinc inventory fell by 275 mt to 113,950 mt, down 0.24%, while cancelled warrants surged by 26,925 mt, up 301.87%, bringing the overall cancelled warrant ratio to 23.63%. Warehouse data showed that the increases were mainly concentrated in Singapore and Kaohsiung. Current overall zinc inventory remained at a relatively low level, while LME Cash-3M maintained a mild contango structure, so attention should be paid to subsequent actual inventory changes and structural risks.

[LME Zinc Cancelled Warrants Increased Sharply] On April 2, 2026, LME zinc inventory decreased by 275 mt to 113,950 mt, down 0.24%, but cancelled warrants increased sharply by 26,925 mt, up 301.87%, with the overall cancellation ratio at 23.63%. Warehouse data showed that the increases were mainly concentrated in Singapore and Kaohsiung. Current overall zinc inventory remained at a relatively low level, and with LME Cash-3M maintaining a mild contango structure, attention should be paid to subsequent actual inventory changes and structural risks.

Researchers at Chungnam National University have developed next-generation zinc batteries using artificial polymer nanolayers to significantly improve stability. This novel protective coating helps prevent dendrite formation and reduces unwanted side reactions, enhancing the overall reliability and practicality of zinc-ion batteries. Aqueous zinc-ion batteries (ZIBs) are increasingly being recognized as a safer and more cost-effective alternative to lithium-ion batteries (LIBs). Although LIBs remain the dominant energy storage solution, they pose safety concerns due to their use of flammable organic electrolytes. In comparison, aqueous ZIBs rely on water-based electrolytes, making them non-flammable, more environmentally friendly, and cheaper.

[SMM Zinc Morning Comment] Overnight, SHFE zinc posted a small bullish candlestick, with the center of the daily candlestick moving higher again, while the middle band of the Bollinger Bands formed resistance above. Overnight, amid expectations that the geopolitical conflict may come to an end, China followed outside China with its center moving higher, but judging from current spot cargo transactions, as zinc prices rose, downstream pricing activity weakened, coupled with......

[SMM Morning Meeting Summary: LME Zinc Posted a Four-Day Winning Streak; Focus on Trump's Speech Today] Overnight, LME zinc posted a four-day winning streak, with the center of the daily candlestick moving higher. Trump released a TACO signal, expectations for an end to the geopolitical conflict in the Middle East increased, the US dollar index fell, nonferrous metals saw bargain hunting, zinc inventory remained at low levels, and bears' exit provided support, driving zinc prices all the way up. Focus on......

[Geopolitical Tensions Eased, Zinc Prices Rebounded] The most-traded SHFE zinc 2605 contract opened at 23,700 yuan/mt. In early trading, bears reduced open interest, and SHFE zinc rose rapidly to a high of 23,735 yuan/mt. It then saw its center drop back slightly and hovered around 23,600 yuan/mt before closing up at 23,550 yuan/mt, up 70 yuan/mt, or 0.3%. Trading volume fell to 87,777 lots, and open interest decreased by 2,612 lots to 88,931 lots.

[SMM Zinc Morning Comment] Overnight, SHFE zinc posted a bullish candlestick with no upper shadow, with support from the 5/10-day daily average below. Driven by the LME market overnight, zinc prices fluctuated upward, but on the fundamentals side, April production at China's domestic smelters is expected to increase by more than 10,000 mt MoM. At elevated zinc prices, downstream enterprises showed lower purchasing enthusiasm, inventory destocking slowed down, and weak domestic fundamentals are expected to limit its upside. Focus on......

[SMM Morning Meeting Summary: Macro Factors and Fundamentals Resonated, and LME Zinc Logged a Three-Day Winning Streak] Overnight, LME zinc logged a three-day winning streak, with support from the 20-day moving average below and resistance from the 40/60-day moving averages above. Overnight, as geopolitical tensions in the Middle East may have de-escalated, the US dollar index moved lower, nonferrous metals rose, and LME zinc inventory continued destocking......