[SMM Zinc Morning Comment] Last Friday, the most-traded SHFE zinc 2608 contract opened at 24,005 yuan/mt. In early trading, SHFE zinc moved sideways along the daily average line, edging down to 23,940 yuan/mt during the session. Subsequently, bears reducing positions drove the price to rise continuously, with SHFE zinc steadily climbing above the daily average line and hitting a high of 24,420 yuan/mt. In the late session, SHFE zinc consolidated at highs with small fluctuations, eventually closing up at 24,400 yuan/mt, up 455 yuan/mt or 1.90%. Trading volume increased to 76,557 lots, while open interest decreased by 2,028 lots to 108,000 lots.

[SMM Morning Meeting Summary: US Dollar Index Continues to Slide, LME Zinc Center Moves Higher] Last Friday, LME zinc opened at $3434.5/mt. At the beginning of the session, prices weakened and dipped to $3387/mt. Subsequently, bears reduced positions, driving the futures to rebound continuously, with prices steadily rising above the daily average line. At the end of the session, it surged to a high of $3503.5/mt, finally closed up at $3500/mt, up $62/mt, or 1.80%. Trading volume increased to 106,000 lots, while open interest decreased by 297 lots to 261,000 lots.

[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】Recently, SHFE zinc prices have continued to fluctuate within a range. Amid the seasonal demand slowdown, downstream enterprises have seen weak order intake, resulting in subdued demand for zinc ingots. As a result, zinc ingot inventories in the East China market have continued to build, reflecting an overall oversupplied market balance. Spot trading activity has remained sluggish, leading to a modest decline in spot premiums.

[Macro Improvement, SHFE/LME Zinc Price Ratio Fluctuated Near 6.9]: This week, the SHFE/LME zinc price ratio fluctuated near 6.9, and the zinc ingot import window remained closed. Outside China, on the macro front, geopolitical conflicts were repeated, and the risk of short-term escalation temporarily eased. The market priced in a 25-basis-point rate hike within the year, and LME zinc experienced fluctuations after its center shifted downward.

[Futures zinc prices stay high, spot premiums struggle to rise]: This week, Ningbo spot premiums remained stable, with the WoW average price basically flat. As of this Friday, Ningbo spot against the 2607 contract was quoted at a discount of 40 yuan/mt, and the premium against Shanghai was 30 yuan/mt. During the week, the premium against Shanghai maintained a fluctuating trend..

[Supply-Side Concerns Persist, SHFE Zinc Center Shifts Upward] The most-traded SHFE zinc 2607 contract opened at 25,250 yuan/mt. In early trading, bulls slightly reduced their open interest, and SHFE zinc's center shifted downward to around 25,160 yuan/mt, moving sideways. It ultimately closed higher at 25,150 yuan/mt, up 165 yuan/mt or 0.66%. Trading volume increased to 151,000 lots, and open interest rose by 4,502 lots to 112,000 lots.

[SHFE Zinc Prices Fluctuated at Highs, Spot Trades Were Moderate]: Shanghai spot premiums fluctuated this week, with the weekly average price up 5 yuan/mt WoW. As of this Friday, ordinary domestic brands were quoted at a discount of 80-50 yuan/mt against the 2607 contract, while the premium brand Shuangyan was quoted at a premium of 130 yuan/mt against the 2607 contract.

[SHFE/LME zinc price ratio continued to fluctuate around 6.9]: This week, the SHFE/LME zinc price ratio fluctuated around 6.9, and the zinc ingot import window remained closed. Outside China, on the macro front, geopolitical conflicts in the Middle East showed signs of easing, expectations of monetary tightening strengthened against the backdrop of rising inflation, and with ex-China zinc inventory persistently low, LME zinc fluctuated at highs.

[Futures Zinc Prices Rose Significantly, Overall Spot Transactions Were Poor During the Week]: Spot premiums in Ningbo fluctuated this week, with the weekly average price up 20 yuan/mt WoW. As of this Friday, Ningbo spot prices against the 2606 contract were quoted at a premium of 40 yuan/mt, with a premium of 60 yuan/mt against the Shanghai premium..