[SMM Morning Meeting Minutes: Macro Sentiment Improved, LME Zinc Rose] Overnight, LME zinc opened at $3,340.5/mt. At the beginning of the session, LME zinc briefly dipped to a low of $3,336.5/mt. Subsequently, bulls increased their open interest, and LME zinc fluctuated upward throughout the session, reaching a high of $3,414/mt during the night session, ultimately closing up at $3,400/mt, up $60/mt, a gain of 1.8%. Trading volume increased to 12,425 lots, and open interest rose by 1,955 lots to 217,000 lots.

[SMM Zinc Morning Comment] Overnight, the most-traded SHFE zinc 2605 contract opened at 23,850 yuan/mt, briefly dipping to a low of 23,840 yuan/mt at the start of the session. Bears then reduced their open interest, and the SHFE zinc center shifted upward to a high of 23,970 yuan/mt, ultimately closing higher at 23,900 yuan/mt, up 185 yuan/mt or 0.78%. Trading volume fell to 47,019 lots, and open interest decreased by 1,040 lots to 71,016 lots.

Premiums in the Tianjin region have consistently remained at a discount. How will premiums trend going forward?

[SMM Zinc Morning Comment] Overnight, the most-traded SHFE zinc 2605 contract opened at 23,750 yuan/mt. At the beginning of the session, it briefly rose to a high of 23,785 yuan/mt. Subsequently, bears increased their open interest, and SHFE zinc fluctuated downward all the way to a low of 23,610 yuan/mt, eventually closing lower at 23,660 yuan/mt, down 130 yuan/mt or 0.55%. Trading volume decreased to 35,832 lots, while open interest increased by 860 lots to 74,221 lots.

[SMM Morning Meeting Minutes: US Dollar Weakened, LME Zinc Edged Up] Overnight, LME zinc opened at $3,325.5/mt. Early in the session, LME zinc fluctuated upward and touched a high of $3,365.5/mt during European trading hours. Subsequently, bears increased open interest, and the LME zinc center shifted downward, hitting a low of $3,314.5/mt during the night session. Bears then reduced open interest, lifting the center, and LME zinc ultimately closed higher at $3,340/mt, up $17/mt, a gain of 0.51%. Trading volume rose to 10,950 lots, and open interest fell by 2,418 lots to 215,000 lots.

[Macro Sentiment Pulled Back and Forth, SHFE and LME Centers Moved Higher] LME zinc was closed at the beginning of the week due to the Easter holiday. After the holiday, it briefly continued the fluctuating trend from the previous week. Then, as tensions in the Middle East eased, macro sentiment improved somewhat, and LME zinc saw some rise. However, the market still carried a certain wait-and-see sentiment, and prices pulled back somewhat......

[SHFE/LME zinc price ratio pulled back to oscillate below 7.1]: This week, the SHFE/LME zinc price ratio pulled back to oscillate around 7.1, and the zinc ingot import window remained closed. Outside China, the Middle East situation remained volatile, inventories outside China stayed at low levels, providing support for zinc prices, and the LME zinc price center shifted upward.

[Downstream Procurement Largely on As-Needed Basis, Spot Transactions Tepid During the Week]: Spot premiums in Shanghai ran at low levels this week, with the weekly average price up 10 yuan/mt WoW. As of this Friday, ordinary domestic brands were at a discount of 50-40 yuan/mt against the 2605 contract, while the premium brand Shuangyan was quoted at a premium of 40-60 yuan/mt against the 2605 contract.

[Concentrated Arrivals in Tianjin, Premiums Declining]: Spot premiums in Tianjin edged down this week, down 10 yuan/mt WoW. As of this Friday, domestic ordinary brands were quoted at a discount of around 90–130 yuan/mt against the 2605 contract, premium brands at a discount of around 70–90 yuan/mt against the 2605 contract, and Tianjin at a discount of around 50 yuan/mt against Shanghai.

[Qingming Holiday Impact on Galvanizing Operations]: The operating rates of galvanising producers stood at 57.89% this week, edging down 0.86 percentage points WoW. Raw material side, zinc prices fluctuated at highs throughout the week, with downstream players picking up fewer goods and mainly consuming existing stocks. However, zinc ingots previously priced by galvanising enterprises were delivered successively, and zinc ingot inventory at galvanising enterprises edged down slightly.