According to SMM, zinc slag payables pulled back slightly but remained at highs seen in recent years. What were the reasons? How will they trend going forward?

[Weak Order Demand in Some Sectors, Zinc Oxide Operating Rates Declined] The industry's operating rates pulled back WoW this week. Dragged down by weak end-use demand, some enterprises slowed down their production pace, and capacity release contracted somewhat......

The year 2026 marks the opening year of the "15th Five-Year Plan." Against the backdrop of intensifying global macro volatility and the deepening advancement of high-quality development in China, the zinc industry is undergoing profound transformation: tightness on the ore side and the release of smelting capacity are creating structural tension, divergence in domestic and overseas inventory reflects the complex dynamics of supply and demand rebalancing, and technological innovation is becoming a key driving force for resolving contradictions and reshaping the landscape. Key areas under the "15th Five-Year Plan" such as new energy and new-type infrastructure are injecting fresh momentum into traditional zinc consumption, while green, low-carbon, and circular economy initiatives are also accelerating the restructuring of industrial logic driven by technological innovation. With the joint support of upstream and downstream enterprises in the zinc industry, industry associations, and all relevant parties, SMM is about to hold the 2026 SMM Zinc Industry Conference & the 8th Hot-Dip Galvanizing Industry Development and Technological Innovation Forum, & the 14th Zinc Salt, Zinc Oxide and Zinc Secondary Resources Development Forum, & the Zinc-Based Materials Development Forum on August 6–8 in Qingdao, Shandong. Themed "Converging Zinc Momentum · Building Zinc Industry · Embarking on a New Journey," the conference is driven by the dual engines of macro perspectives and fundamental analysis, closely aligned with the main thread of high-quality development under the "15th Five-Year Plan," and focused on four key dimensions: macro policies, supply-demand patterns, global trade, and technological innovation. It aims to drive cost reduction and efficiency improvement through technological breakthroughs, respond to market fluctuations through collaborative innovation, and jointly chart a new blueprint for the high-quality and sustainable development of the zinc industry. Chongqing Weiyi Electric Power Co., Ltd. will grandly attend this event, joining industry peers to explore industry development trends and work together to propel the zinc industry to new heights. Click the to register now, and together witness and participate in this extraordinary and far-reaching industry event, co-creating a brilliant new chapter! A Brilliant Launch Located in the shining pearl of Chongqing Liangjiang New Area — the Caijia District of the China (Chongqing) Pilot Free Trade Zone, Chongqing Weiyi Electric Power Co., Ltd. was wholly founded by Mr. Wang Zhongcheng with an investment of 20 million yuan, meticulously built with craftsmanship, and steadfastly dedicated to the electric power industry, striving to become a brilliant rising star in this field. Core Business, Leading the Future The company's business scope is extensive, covering diversified areas including power supply, high-end electrical equipment, environmental protection and energy-saving equipment, non-ferrous metals, metal products, electrical products, office supplies, and labor protection supplies, precisely aligning with every segment of nationally licensed operations. We are not merely operating products; we are contributing to the electrical safety and sustainable development of modern society. Outstanding Quality, Integrity as Foundation Since its establishment, Chongqing Weiyi Electric Power Co., Ltd. has consistently upheld the business philosophy of "outstanding quality forges brilliance, integrity wins the future." With the vision of building an industry benchmark, the company has earned widespread acclaim and high recognition from all sectors of society in the hot-dip galvanizing industry and trade sector. We fully understand that every collaboration is an entrustment of trust, and every product is a conveyance of responsibility. Professional Agency, Service First In the field of wires and cables, we have partnered with top producers in and outside China, and with outstanding product quality, meticulous after-sales service, and efficient logistics delivery, we have won the favour and trust of multiple major projects, including Chongqing Shapingba Fenghuang Plaza, Chongqing International Airport, Changan Jinxiu City, and Chongqing Expressway Service Areas. The laying of every cable bears witness to our relentless pursuit of quality and our ultimate commitment to service. Non-ferrous Metals, Win-Win Cooperation In the field of non-ferrous metal sales, we have established long-term and stable cooperative relationships with well-known enterprises in and outside China, such as Chongqing Yuhuang Electric Power Equipment Manufacturing Co., Ltd. and Chongqing Shuntai Steel Tower Manufacturing Co., Ltd., and have successfully joined hands with industry leaders including Anhui Hongyuan Steel Tower Co., Ltd., Jiangsu Huadian Steel Tower Manufacturing Co., Ltd., Zhejiang Shengda Steel Tower Manufacturing Co., Ltd., and Jiangsu Zhenguang Steel Tower Manufacturing Co., Ltd., jointly writing a brilliant chapter of win-win cooperation. Every collaboration is the best proof of Weiyi Electric Power's strength and credibility. New Energy Exploration, Innovation-Driven Looking to the future, Chongqing Weiyi Electric Power Co., Ltd. is actively engaging in the vast field of new energy, focusing on cutting-edge areas such as PV and energy storage, and has submitted multiple patent applications to the National Patent Office, leading the enterprise's future development through technological innovation. We firmly believe that only through continuous exploration and breakthroughs can we inject more green momentum and unlimited possibilities into the power industry. Fulfilling Social Responsibility and Demonstrating Corporate Commitment Under the leadership of the Beibei District Federation of Industry and Commerce and the unified arrangement of the Caijia Chamber of Commerce, the company actively participated in visits to enterprises in difficulty. In 2024, the company engaged in targeted poverty alleviation in Xiushan County, Chongqing, which was paired with Beibei District, purchasing agricultural and specialty products from Xiushan County to support the development of Xiushan. Moving Forward Together, Creating Brilliance Together "High quality, high efficiency" is our relentless pursuit; "hand in hand, moving forward with you" is our sincere wish; "100% qualified products in exchange for your 100% satisfaction" is our solemn commitment to every client. We warmly welcome guests from all directions to visit us for field trips and business negotiations. Let us join hands and create an even more brilliant tomorrow for the power industry! ◆ Contact Information ◆ Wang Zhongcheng 13500344411 Long Press to Scan the Code and Register Now 2026 SMM Zinc Industry Conference

The year 2026 marks the opening year of the "15th Five-Year Plan." Against the backdrop of intensifying global macro volatility and the deepening advancement of high-quality development in China, the zinc industry is undergoing profound transformation: tightness at the mine end and the release of smelting capacity are creating structural tension, divergence in domestic and overseas inventory reflects the complex dynamics of supply-demand rebalancing, and technological innovation is becoming the key momentum for resolving contradictions and reshaping the landscape. Key areas of the "15th Five-Year Plan" such as new energy and new-type infrastructure are injecting fresh momentum into traditional zinc consumption, while green, low-carbon, and circular economy principles are also accelerating the restructuring of industrial logic driven by technological innovation. With the joint support of upstream and downstream enterprises in the zinc industry, industry associations, and relevant parties, SMM is about to hold the 2026 SMM Zinc Industry Conference & the 8th Hot-Dip Galvanizing Industry Development and Technological Innovation Forum & the 14th Zinc Salt, Zinc Oxide and Zinc Secondary Resources Development Forum & the Zinc-Based Materials Development Forum on August 6–8 in Qingdao, Shandong. Themed "Converging Zinc Momentum · Building Zinc Industry · Embarking on a New Journey," the conference is driven by the dual engines of macro perspective and fundamental analysis, closely aligned with the "15th Five-Year Plan" high-quality development mainline, focusing on four major dimensions: macro policy, supply-demand pattern, global trade, and technological innovation. It aims to drive cost reduction and efficiency improvement through technological breakthroughs, respond to market fluctuations through collaborative innovation, and jointly chart a new blueprint for high-quality and sustainable development of the zinc industry. Henan Feima Crane Machinery Group Co., Ltd. will grandly attend this event, discussing industry development trends with industry peers and jointly driving the zinc industry to new heights. Click the to register immediately, witness and participate in this extraordinary and far-reaching industry event together, and co-create a brilliant new chapter! Henan Feima Crane Machinery Group Co., Ltd. is a professional manufacturer specializing in the production of bridge and gantry cranes, wire rope electric hoists, construction machinery, and crane accessories. It is a member unit of the Bridge and Gantry Crane Branch and a council member of the Hoist Branch of the China Heavy Machinery Industry Association. It was among the first crane manufacturers in the industry to obtain ISO quality system certification, and its products are insured by China United Property Insurance Company and Pacific Insurance Company. Founded in 1992, Feima Group covers an area of 200,000 m², currently has over 810 employees, and possesses 226 sets of production and inspection equipment. With strong technical capabilities, the group has accumulated rich technical and management experience, possesses comprehensive manufacturing capabilities, and maintains excellent standards in China in terms of technical strength, equipment, processes, and detection methods. Feima Group is a high-tech enterprise, a "specialized, refined, distinctive, and innovative" enterprise, a China Quality and Integrity Enterprise, a Henan Province Science and Technology Enterprise, and a Level-1 Safety Production Standardization Enterprise. It has been awarded numerous honorary titles including "Quality Management Compliance Enterprise," "Advanced Unit in Metrology Work," "Qualified Certificate for Enterprise Quality Inspection Institution," "Contract-Honoring and Trustworthy Enterprise," "Advanced Unit in Enterprise Tax Payment," and "Export Product Quality License Certificate" at the ministerial, provincial, and municipal levels. Feima Group's leading products are widely applied in industries such as machinery, hot-dip galvanizing, metallurgy, mining, electric power, railway, aerospace, ports, petroleum, and chemical engineering. The company is a qualified crane machinery supplier and cooperative partner of central state-owned enterprises including China Railway, Sinohydro, CNNC, Guodian, and HBIS, as well as private enterprises. Its products have been exported to over 130 countries and regions, including the UAE, France, the US, and Russia. The company adheres to excellent quality, achieves continuous improvement, meets social needs, and ensures customer satisfaction. Feima will aim at the international frontier technology of cranes. Innovation is limitless, reputation is eternal; let our friends experience "Feima Cranes, bringing you safety, making you at ease," and let our friends feel "Looking across the world, Feima gallops on." ◆ Contact Information ◆ Han Junqiang 13839086999 Long press to scan the code and register now 2026 SMM Zinc Industry Conference

[High Prices Weighed on Downstream Demand; Downstream Consumption Lacked Highlights] Operating rates this week were basically flat compared with last week, with large enterprises maintaining relatively stable operations overall. Some small enterprises planned to ramp up production in May, driving a slight increase in production. Current actual market consumption showed mediocre performance, with no significant improvement in orders across various sectors...

The year 2026 marks the opening year of the "15th Five-Year Plan" period. Against the backdrop of intensifying global macro volatility and the deepening advancement of high-quality development in China, the zinc industry is undergoing profound transformation: tightness on the ore side and the release of smelting capacity are creating structural tension, divergence between domestic and overseas inventories reflects the complex dynamics of supply-demand rebalancing, and technological innovation is becoming the key momentum for resolving contradictions and reshaping the landscape. Key areas under the "15th Five-Year Plan" such as new energy and new-type infrastructure are injecting new momentum into traditional zinc consumption, while green, low-carbon, and circular economy principles are accelerating the restructuring of industrial logic driven by technological innovation. With the joint support of upstream and downstream enterprises in the zinc industry, industry associations, and relevant parties, SMM is about to hold the 2026 SMM Zinc Industry Conference & the 8th Hot-Dip Galvanizing Industry Development and Technological Innovation Forum & the 14th Zinc Salt, Zinc Oxide and Zinc Secondary Resources Development Forum & the Zinc-Based Materials Development Forum on August 6-8 in Qingdao, Shandong. Themed "Converging Zinc Momentum · Building Zinc Industry · Embarking on a New Journey," the conference is driven by the dual engines of macro perspectives and fundamental analysis, closely aligned with the "15th Five-Year Plan" high-quality development mainline, focusing on four major dimensions: macro policies, supply-demand patterns, global trade, and technological innovation. It aims to drive cost reduction and efficiency improvement through technological breakthroughs, respond to market fluctuations through collaborative innovation, and jointly chart a new blueprint for high-quality and sustainable development of the zinc industry. Gansu Changba Nonferrous Metals Co., Ltd. will attend this grand event, discussing industry development trends with industry peers and jointly driving the zinc industry to new heights. Click the to register now, witness and participate in this significant and far-reaching industry event, and co-create a glorious new chapter! ◆ Company Overview ◆ Gansu Changba Nonferrous Metals Co., Ltd. is a subsidiary of Baiyin Nonferrous Group Co., Ltd., with Chengzhou Zinc Smelter and Changba Lead-Zinc Mine under its management. It is a large state-owned nonferrous metals enterprise integrating lead-zinc mining, mineral processing, smelting, and scientific research. Chengzhou Zinc Smelter currently has an annual electrolytic zinc production capacity of 100,000 mt. It is a modern smelter integrating zinc metal smelting, comprehensive utilization of resources, and R&D of new nonferrous metal smelting processes. The enterprise adheres to the development direction of "lean collaboration, digital integration, and green leadership," closely aligned with the goal of creating the ultimate quality benchmark. It has continuously made breakthroughs in improving zinc smelting quality. In 2026, the first batch of high-purity zinc ingots with a purity of 99.998% was successfully produced, injecting solid momentum into further enhancing the enterprise's core competitiveness, expanding the high-end zinc materials market, and driving high-quality development of the enterprise. The Chengzhou Zinc Smelter has always adhered to the pursuit of excellence and perfection. With the successful production of 99.998% high-purity zinc ingots as a major breakthrough, the smelter has continued to increase investment in scientific research, actively introduced advanced and applicable production technologies and equipment, focused on building a high-caliber professional and technical talent team, continuously optimized the production process for 99.997% high-purity zinc ingots, and steadily carried out technical research on even higher-purity zinc products. ◆ Honors Bestowed: Quality Certified by Authoritative Bodies ◆ The outstanding quality of the 99.998% high-purity zinc ingots has been widely recognized by authoritative institutions both within and outside the industry, with numerous prestigious awards attesting to their quality excellence: · Technology Innovation Awards: Leveraging core technological breakthroughs such as "Research and Application of Low-Impurity Electrolytic Zinc Standard Creation," the smelter won the "Second Prize of Nonferrous Metals Industry Science and Technology Award," the "First Prize of Gansu Province Science and Technology Progress Award," and the "Grand Prize of Science and Technology of CITIC Guoan Group Co., Ltd.," with its technical capabilities recognized at national, provincial, and municipal/county levels. The "R&D and Application of High-Grade Zinc Ingot Preparation Process Technology" won a Bronze Award at the 11th International Invention Exhibition "Belt and Road" and BRICS Skills Development and Technological Innovation Competition. "Full-Process Lean Management Control for Creating Excellent Zinc Ingot Quality" won the Second Prize of the 2025 Nonferrous Metals Enterprise Management Modernization Innovation Achievement Award. The smelter built Nanshi's first 5G+ digital workshop, deployed industrial robots and unmanned AGV systems, achieved full-process automation of ingot production, and improved production efficiency by 30%. · Product Quality Awards: The main product, zinc ingots (including the 99.997% grade), together with the by-product sulphuric acid, were awarded the highest honor in nonferrous metals product physical quality certification — the "Gold Cup Award," serving as an authoritative endorsement of their quality stability and superiority by the industry. In 2025, the smelter was recognized as a "Premium Brand" by the CNIA. · Market Access Certification: The main product, zinc ingots, was successfully registered on the Shanghai Stock Exchange, obtaining standardized market circulation qualifications. The brand value reached 2.482 billion yuan, ranking 31st nationwide among "Product Brands," laying a solid foundation for the market promotion of 99.997% high-purity zinc ingots. ◆ Diverse Applications: Empowering High-End Industrial Development ◆ Due to its extremely low impurity content and excellent chemical stability, the 99.998% high-purity zinc ingot demonstrates irreplaceable application value in multiple high-end fields: · High-End Electronics: As a core raw material for electronic component coatings, its low-impurity characteristics effectively enhance the conductivity and service life of electronic devices, and it is widely used in the production of precision electronic components such as integrated circuits and smartphone chips. · Aerospace: Used in anti-corrosion coatings for aerospace components and lightweight alloy material manufacturing, its stable physicochemical properties can adapt to extreme environments, ensuring the reliability of aerospace equipment. · Pharmaceutical and Chemical Industry: Serving as raw materials for pharmaceutical intermediates and high-end catalysts, its high-purity characteristics ensure product safety and efficacy, meeting the stringent standards of the pharmaceutical and chemical industry. · New Energy: In the production of new energy products such as zinc-based batteries and energy storage equipment, high-purity zinc ingots can enhance battery energy density and cycle life, facilitating the upgrading of the new energy industry. ◆ Outstanding Performance: Market Recognition Demonstrates Strength ◆ With a zinc ingot capacity of 100,000 mt, the 99.998% high-purity zinc ingots, leveraging core advantages of low lead, low iron, and low cadmium, received strong recognition from downstream clients upon market launch, delivering impressive market results: · Industry-Leading Zinc Ingot Quality: Zinc ingot purity reaches 99.998%, with lead content at 0.0009%, iron content stable at 0.0003%, and cadmium, tin, and aluminum consistently maintained at 0.0002%, placing it at a leading level in the ISP zinc smelting industry. · Extensive Market Coverage: Products were rapidly sold to core markets such as Shanghai and Xuzhou, covering multiple sectors including high-end electronics and precision manufacturing, breaking the supply bottleneck of high-end high-purity zinc ingots. · Leading Client Satisfaction: With stable purity, extremely low impurity content, and reliable supply capability, a stable client base and strong market reputation have been established. Client satisfaction in 2025 reached 100%. ◆ Future Outlook: Continuously Leading High-Quality Development ◆ Chengzhou Zinc Smelter consistently adheres to the pursuit of excellence and perfection. Taking the successful production of 99.998% high-purity zinc ingots as a significant breakthrough, it continues to increase R&D investment, actively introduces advanced and applicable production technologies and equipment, focuses on building a high-caliber professional technical talent team, and continuously optimizes the production process for 99.997% high-purity zinc ingots while steadily advancing technical breakthroughs for even higher-purity zinc products. Meanwhile, it deepens industry-academia-research collaborative innovation, expands application scenarios of high-purity zinc in high-end manufacturing, new materials, and other fields, and promotes coordinated improvement and synergistic development across the upstream and downstream of the industry chain. The enterprise is anchored on the goal of building an industry-leading lean benchmark enterprise, continuously strengthening whole-process quality management, deepening green and low-carbon production, accelerating intelligent transformation and upgrading, and driving enterprise quality improvement, efficiency enhancement, and transformation with solid achievements, contributing tangible "Chengye Strength" to the high-quality development of the zinc smelting industry. ◆ Contact Information ◆ Long press to scan the code and register now 2026 SMM Zinc Industry Conference

[Zinc Oxide Operating Rates Relatively Stable but Enterprise Profit Margins Narrow] Currently, the overall demand in the zinc oxide industry was relatively stable, but market price involution was prominent. Meanwhile, some enterprises saw rising production costs due to production processes and increased raw material costs, while product selling prices were suppressed by market competition, leaving limited upside room...

During the May Day holiday in 2026, LME zinc traded in a general sideways range, finding solid support at the 40-day moving average. In terms of specific performance, LME zinc showed an N-shaped trend of rising first, then falling and rebounding again.

[Divergent Terminal Order Performance, Zinc Oxide Operating Rates Moved Sideways] This week, the decline in zinc oxide operating rates was mainly due to some small enterprises being in a state of production suspension due to poor orders, dragging down overall operating levels. Currently, although large zinc oxide factories maintained stable orders, industry profits were thin, with intense low-price competition across various products. By sector, tyre factories' orders were relatively stable, but feed-grade zinc oxide performed sluggishly...

[Zinc Oxide Operating Rate Edged Down] The operating rate of the zinc oxide industry was 59.42% this week, edging down 0.28 percentage points WoW. Zinc prices continued to rise during the week, with China's zinc prices running steadily above 24,000 yuan/mt. Enterprises were relatively cautious in raw material procurement, and inventory remained largely flat compared with last week.