[Resumption recovery, operating rates of galvanising producers rise]: This week's operating rate of galvanising producers was 54.56%, up 3.03 percentage points WoW. Raw material side, zinc prices rebounded this week. Downstream players primarily stayed on the sidelines, mainly picking up previously priced zinc ingots, while zinc ingot inventories at galvanising enterprises edged up. The operating rate rebound was mainly because some galvanising plants were closed for the Dragon Boat Festival last week, causing a sharp decline in operations, while this week they all resumed normal production, pushing the rate back up.

[SMM Flash News] Today, the daytime session center rose. In the Guangdong market, some traders held limited spot zinc ingot inventories, and quotes remained relatively firm. Downstream fear of high prices emerged, enterprises showed weak willingness to purchase, mostly preferring to withdraw previously priced goods, and overall market demand was sluggish.

[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.

[Multiple Disruptions Weigh on Zinc Prices; SHFE and LME Prices Showed Continuous Downward Movement This Week] Early in the week, preliminary negotiations between the US and Iran raised hopes for a peace agreement, boosting market optimism and pushing LME zinc higher. Subsequently, expectations for US Fed interest rate hikes intensified, leading to a broad decline in global equities and non-ferrous metals. The US dollar index strengthened, and LME zinc continued to pull back...

【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.

[Traders’ casual shipment offers, spot premiums fluctuated this week]: This week, spot premiums in Shanghai maintained a fluctuating trend, basically flat WoW from the weekly average price. As of this Friday, ordinary domestic brands were quoted at a discount of 30-20 yuan/mt against the 2607 contract, while the high-end brand Shuangyan was quoted at a premium of 60 yuan/mt against the 2607 contract..

[Consumption Weakens, Operating Rates of Galvanising Producers Decline]: The operating rate of the galvanising industry was 56.72% this week, down 0.77 percentage points WoW. Raw material side, zinc prices pulled back last week to a level more acceptable for downstream buyers, who actively priced and restocked. This week, downstream buyers mainly picked up goods, and zinc ingot inventories at galvanising enterprises edged up.

[Weak Consumption and Subdued Operating Rates of Galvanising Producers]: The operating rate of the galvanising industry was 58.33% this week, down 1.49 percentage points WoW. Raw material side, zinc prices fluctuated at highs this week, downstream buyers restocked on rigid demand at low prices, mainly to digest inventories, and galvanising enterprises' zinc ingot inventories declined notably.

[Consumption Weakens, Operating Rates of Galvanising Producers Continue to Decline] The operating rate of galvanising producers was 57.73% this week, down 0.6 ppt WoW. Raw material side, zinc prices fluctuated at highs this week. Downstream users restocked on rigid demand, mainly through long-term contracts, with few point-price purchases. Zinc ingot inventory at galvanising enterprises edged down.

[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.