【SMM Flash】Today in Guangdong, the purchasing sentiment of refined zinc stands at 1.85, while selling sentiment registers 2.42.With upward shift in futures price center, downstream buyers show obvious reluctance to chase higher prices. Affected by pricing, market demand turns softer with muted trading activity, and spot premiums/discounts linger at low levels.

【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.

[Ningbo Refined Zinc Market] According to market sources, traders in the Ningbo market have maintained firm quotations in recent weeks. However, with SHFE zinc prices remaining elevated and downstream orders staying weak during the seasonal demand lull, buyers have shown limited interest in purchasing zinc ingots. Overall, spot trading activity has remained subdued.

[Shanghai Refined Zinc Market] According to market sources, refined zinc inventories in Shanghai have remained at relatively high levels recently. However, favorable margins in the local invoice market, combined with the reopening of the export arbitrage window, have strengthened traders' willingness to hold firm on prices. As a result, spot premiums for refined zinc in the Shanghai market have continued to rise.

[Shanghai Refined Zinc Market] SHFE zinc prices rose notably this week compared with the previous week. However, downstream demand remained weak amid the seasonal slowdown, with buyers continuing to procure only on an as-needed basis. Spot market transactions were generally sluggish, although traders maintained relatively firm quotations. Overall, spot premiums fluctuated at low levels during the week.

In H1 2026, the refined zinc industry struggled under multiple pressures. Ore supply remained tight, with both domestic and imported zinc concentrate TCs falling to record lows since data records began in 2013, directly squeezing smelter profits, and some enterprises have already fallen into losses. How will the refined zinc market develop in H2?

[Shanghai Refined Zinc Market] The futures zinc price rebounded from a low to above 24,000 yuan/mt. Downstream enterprises showed strong wait-and-see sentiment today, and as they had bought the dip considerably last week, their in-plant raw material inventories were mostly sufficient, leaving overall trading in the Shanghai market sluggish today.

[Shanghai Refined Zinc Market] Spot discounts for zinc ingot in Shanghai narrowed gradually this week. As SHFE zinc prices fell to lower levels, downstream enterprises showed strong buying sentiment and actively made purchases at favorable price points. Spot transactions in the Shanghai market improved significantly, driving zinc ingot premiums higher.

[East China Refined Zinc Market] Futures zinc prices dropped below 24,500 yuan/mt. Downstream enterprises began purchasing on dips and settling prices since last night, and market spot trades improved MoM. However, some downstream players remained bearish, and coupled with poor overall downstream consumption during the off-season, the improvement in overall spot transactions today fell short of expectations. Spot premiums in east China edged up.