The operating rates of galvanising producers this week were 61.21%, down 1.17 percentage points WoW. Raw material side, zinc prices pulled back to levels more acceptable to downstream this week. Downstream players stockpiled for the Labour Day holiday in a timely manner, and zinc ingot inventory at galvanising enterprises increased.

[Zinc Price Center Pulled Back During the Week, Guangdong Premiums Rose Slightly] As of Thursday, mainstream #0 zinc in Guangdong was quoted at a discount of 55-45 yuan/mt against the market price, and the Shanghai-Guangdong price spread narrowed. Recently, invoice quotas in the market tightened, reducing the number of traders making shipments. Combined with the pullback in the zinc price center during the week, downstream dip-buying increased, and traders took the opportunity to raise premiums for shipments. Multiple factors drove Guangdong premiums to rise this week......

[Tianjin Zinc Ingot Spot Premiums Rose, Contract Rollover Pricing This Week]: Spot premiums in Tianjin rose this week, up 35 yuan/mt WoW. As of Friday, ordinary brands were quoted at a discount of 0-120 yuan/mt against the 2606 contract, premium brands were quoted at a premium of 10 yuan/mt against the 2606 contract, and Tianjin was quoted at a discount of 70 yuan/mt against Shanghai. The price spread between Shanghai and Tianjin widened, with contract rollover pricing this week.

[Some Galvanizing Plants Started Holiday Early, Operating Rates Weakened]: The operating rates of galvanising producers this week were 61.21%, down 1.17 percentage points WoW. Raw material side, zinc prices pulled back to levels more acceptable to downstream this week. Downstream players stockpiled ahead of the Labour Day holiday in a timely manner, and zinc ingot inventory at galvanising enterprises increased.

[SHFE/LME zinc price ratio rebounded to around 7.1 and oscillated]: This week, the SHFE/LME zinc price ratio rebounded to around 7.1 and oscillated, with the zinc ingot import window remaining closed. Outside China, increased uncertainty over the US-Iran conflict triggered inflation concerns, the US dollar index strengthened, and growing concerns over economic growth weighed on non-ferrous metals, which remained in the doldrums. LME inventory edged up, and LME zinc declined.

[Last Trading Week Before the Holiday: Spot Premiums Edged Up] Ningbo spot premiums edged up this week, with the weekly average price up 10 yuan/mt WoW. As of Thursday, Ningbo spot prices were quoted at a discount of 20 yuan/mt against the 2606 contract, with a Shanghai premium of 20 yuan/mt.

Ahead of the Labour Day holiday, SMM surveyed galvanising enterprises on their holiday arrangements. This survey covered 27 galvanising enterprises with a total capacity of 20.10 million mt. According to SMM, some enterprises will take 1-13 days off during the Labour Day holiday, while others will maintain normal production without any break, with an estimated total impact on zinc consumption of approximately 5,785 mt.

As the Labour Day holiday approaches, SMM communicated with galvanized sheet enterprises regarding their holiday arrangements. The survey covered 20 galvanized sheet enterprises with a combined capacity of 17.06 million mt/year, affecting zinc consumption of 243 mt

[SMM Zinc Morning Comment] Overnight SHFE zinc recorded a bearish candlestick, with moving averages above forming resistance. Base metals were generally under pressure amid poor macro sentiment, and the spot market also...

[SMM Morning Meeting Minutes: Poor Macro Sentiment, LME Zinc Posted Three Consecutive Losses] Overnight LME zinc posted three consecutive losses, with the daily candlestick center shifting downward and the 40-day average line providing support below. Overnight the US Fed kept interest rates unchanged, the US dollar index strengthened, and market concerns over economic growth intensified. Non-ferrous metals were in the doldrums, LME zinc......