[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.

[Tianjin Zinc Ingot Premiums Edged Up]: Spot premiums in the Tianjin area rose this week, edging up 5 yuan/mt WoW. As of this Friday, domestic regular brands were quoted at a discount of 50-80 yuan/mt against the 2606 contract, premium brands at a discount of 0-30 yuan/mt against the 2606 contract, and Tianjin at a discount of around 90 yuan/mt against Shanghai.

[Weakening Consumption, Operating Rates of Galvanising Producers Continued to Decline]: The operating rate of the galvanizing industry was 58.33% this week, down 1.49 percentage points WoW. Raw material side, zinc prices fluctuated at highs this week, and downstream players restocked on dips for rigid demand, mainly to digest inventories, with zinc ingot inventories of galvanising enterprises declining notably. The decline in operating rates was mainly due to the onset of the consumption off-season, compounded by rainfall in multiple regions, which weakened end-use demand and led to a notable drop in galvanizing orders.

[Insufficient End-Use Consumption Support, Spot Premiums Continued to Oscillate in Contango] During the week, the center of zinc prices shifted slightly downward, and downstream pricing-based purchases increased, but overall transactions remained subdued. Recently, traders making shipments in the market gradually increased, coupled with downstream consumption entering the off-season and weak purchase willingness, spot premiums lacked bottom support......

[End-Use Consumption Showed Mediocre Performance, Die-Casting Zinc Alloy Production Declined] Currently, end-use consumption has entered the traditional off-season. Coupled with raw material prices remaining at high levels, downstream players mostly maintained just-in-time procurement, with overall stockpiling enthusiasm being insufficient...

[Frequent Market Disruptions Drive SHFE and LME Prices Higher] At the beginning of the week, the tug-of-war between longs and shorts intensified. On the macro front, the Middle East situation remained unresolved and market uncertainty persisted, but the US dollar index retreated from highs. Combined with persistently low zinc ingot inventory outside China, LME zinc maintained a fluctuating trend......

The zinc market in May 2026 is experiencing unprecedented structural pressure. Import zinc concentrate TCs have fallen to -$56.25/dmt, while domestic TCs have dropped to 400 yuan/mt in metal content on a weekly basis.

[SMM Morning Meeting Minutes: Weak US Dollar, Zinc Prices Rise Accordingly] Overnight, LME zinc recorded a large bullish candlestick with a long lower shadow, with the middle Bollinger Bands providing support below. The US core PCE price index annual rate in April rose to 3.3%, in line with market expectations...

[SMM Zinc Morning Comment] SHFE zinc posted a small bullish candlestick overnight, with the mid-rail of the Bollinger Bands providing support below, while MACD turned into a bearish candlestick. Overnight macro sentiment weakened, and non-ferrous metals broadly declined, but......