【Ningbo Refined Zinc Market】SHFE zinc prices traded at relatively low levels early in the week, encouraging some downstream consumers to purchase on a pricing basis. However, as zinc prices rebounded, buyers turned more cautious and largely stayed on the sidelines. Combined with weak overall demand for zinc ingots, spot trading remained sluggish, while traders adopted a more passive selling strategy. As a result, Ningbo spot premiums rose initially before easing later in the week.

【Shanghai Refined Zinc Market】Shanghai spot premiums increased earlier this week. The rise was mainly driven by traders maintaining firm offers following last week's bullish sentiment. However, as warehouse warrants flowed into the Shanghai market and SHFE zinc prices climbed noticeably, downstream buyers became increasingly cautious at higher prices. Spot trading subsequently weakened, leading spot premiums to retreat.

[Traders Continue to Hold Prices Firm, Spot Premiums in Shanghai Rise WoW]: This week, spot premiums in Shanghai moved higher, up 40 yuan/mt WoW from the previous week's average. As of this Friday, ordinary domestic brands were quoted at a premium of 20 yuan/mt against the 2608 contract, while the high-priced brand Shuangyan was quoted at a premium of 160 yuan/mt against the 2608 contract..

[Traders raise spot quotes, market premiums up WoW]: This week, Ningbo spot premiums rose first then fell, with the overall average premium rising by 35 yuan/mt WoW. As of this Friday, Ningbo spot prices against the 2608 contract were quoted at a premium of 25 yuan/mt, and against Shanghai at a premium of 20 yuan/mt. During the week, the premium against Shanghai maintained a fluctuating trend..

[Enterprises resumed normal production, and the operating rate of die-casting zinc alloy rose] The operating rate rose this week mainly because enterprises that had suspended production last week resumed production this week. From the perspective of end-use demand, due to the off-season, the end-user orders for all sectors of die-casting zinc alloy remained weak...

[Galvanizing Operating Rate Edges Down]: This week, the operating rate of the galvanizing industry was 54.86%, down 0.21 percentage points WoW. From the raw material side, zinc prices continued to consolidate at highs this week, combined with weak consumption, enterprises still purchased mostly on a need-to basis, and galvanising enterprises' zinc ingot inventories continued to decline.

[Premiums in Tianjin Rebound]: Spot premiums in Tianjin rose this week, up 20 yuan/mt WoW. As of Friday, China’s common brands quoted discounts of around 50-120 yuan/mt against the 2608 contract, while high-end brands quoted premiums of around 10-30 yuan/mt against the 2608 contract. The Tianjin market quoted a discount of around 90 yuan/mt against the Shanghai market, with the Shanghai-Tianjin price spread widening.

[Shanghai Zinc: Futures Zinc Prices Consolidate at Highs, Spot Premiums Remain Stable] Today, mainstream transaction prices for #0 zinc were concentrated at 24,655-24,735 yuan/mt, Shuangyan mainstream transactions were at 24,795-24,875 yuan/mt, and #1 zinc mainstream transactions were at 24,585-24,665 yuan/mt. In early trading, market quotes against the SMM average price showed premiums of 10-20 yuan/mt, with no quotes against futures yet...

Teck Resources reported gross profit before depreciation and amortisation of $353 million from its zinc segment for the quarter ended June 30, up from $159 million a year earlier. The improvement reflected higher zinc prices and the continued implementation of an optimised feed strategy at Trail Operations. The company generated $1.7 billion in operating cash flow and ended the quarter with $10.3 billion of liquidity, including $6.1 billion in cash. Teck maintained its full-year zinc production guidance at 410,000–460,000 tonnes, expected to yield 190,000–230,000 tonnes of refined zinc. Further monitoring should focus on Trail Operations’ refined-zinc output, feed availability and delivery against guidance.

[SMM SHFE Zinc Morning Comment] Overnight, SHFE zinc stopped rising and started to fall, with the KDJ gap widening upwards. Amid escalating geopolitical conflicts in the Middle East, concerns over economic downturn triggered by inflation worries grew, while China's social inventory increased again. Poor consumption also encountered resistance from above, with zinc prices mainly fluctuating within a range...