【Imported Zinc Concentrate Market】The import arbitrage for zinc concentrate has deteriorated further amid a widening gap between domestic and overseas zinc prices, reducing the economic attractiveness of imported material. Smelters continue to prioritize domestic concentrate procurement. Spot trading activity for imported zinc concentrate remained relatively limited this week, while treatment charges (TCs) continued to hover at low levels.

[End-Use Consumption Lacking Sufficient Support, Guangdong Zinc Premiums Move Sideways] This week, Guangdong premiums were up around 15 yuan/mt WoW. As of this Friday, mainstream #0 zinc in Guangdong was quoted at a discount of 75-120 yuan/mt against the market...

[More Frequent Production Control and Cuts Among Enterprises; Die-casting Zinc Alloy Operating Rates Decline] The decline in operating rates was mainly due to weakening end-use demand, with sluggish shipments at alloy plants leading to production control and cuts. Demand side, end-use consumption was in the traditional off-season, with orders across downstream sectors generally weak...

[Frequent disruptions in China’s supply side; TCs fell in many regions of China in August]: On a weekly basis, the SMM Zn50 domestic weekly average TC fell 400 yuan/mt Zn WoW to -1,150 yuan/mt Zn, and the SMM Imported Zinc Concentrate Index fell $3.5/dmt WoW to -$98.13/dmt. On a monthly basis, the SMM Imported Zinc Concentrate Index fell $17.01/dmt MoM in July to -$89.81/dmt....

[Trader Shipment Willingness is Low at Month-End, Market Holds Prices Firm]: This week, spot premiums in Shanghai rose, with the average price increasing by 10 yuan/mt WoW. As of this Friday, ordinary domestic brands were quoted at a premium of 20~30 yuan/mt against the 2609 contract, while the high-end brand Shuangyan was quoted at a premium of 130 yuan/mt against the 2609 contract.

The SHFE/LME zinc price ratio pulled back to around 6.8 and consolidated: This week, the ratio pulled back to around 6.8 and consolidated, closing the zinc ingot import window. Outside China, the US Fed stood pat at its July meeting, US GDP and PCE data missed expectations, and the pullback in the US dollar index boosted base metals. Meanwhile, LME inventory dropped to around 100,000 mt, and LME zinc remained relatively strong.

SHFE/LME zinc price ratio pulled back to around 6.8 and consolidated: This week, the ratio pulled back to around 6.8 and consolidated, while the zinc ingot import window closed. Outside China, the US Fed held steady at its July FOMC meeting, while US GDP and PCE data came in below expectations, causing the US dollar index to pull back and boost base metals. Meanwhile, LME zinc inventory fell to around 100,000 mt, and LME zinc remained relatively strong.

[Weak demand, galvanising operating rate edges down]: This week, the operating rate of the galvanising industry was 53.39%, down 1.47 percentage points WoW. Raw material side, zinc prices continued to consolidate at highs this week, and enterprises' purchases were still mainly based on rigid demand, with zinc ingot inventories at galvanising enterprises continuing to decline.

[Weak Demand, Galvanizing Operating Rates Edge Down]: This week, the operating rate of the galvanizing industry was 53.39%, down 1.47 percentage points WoW. Raw material side, zinc prices continued to consolidate at highs this week, and enterprise procurement remained mainly rigid demand-driven. The zinc ingot inventory at galvanising enterprises continued to decline.

[Tianjin Premiums Remain Stable]: Spot premiums in Tianjin remained little changed this week. As of this Friday, domestic ordinary brands reported discounts of 60-120 yuan/mt against the 2609 contract, high-end brands reported around parity against the 2609 contract, and the Tianjin market reported a discount of around 100 yuan/mt against the Shanghai market. The Shanghai-Tianjin price spread widened. This week's quotes were based on the contract rollover.