[China Oversupply Weighed on SHFE Zinc]: The most-traded SHFE zinc 2604 contract opened at 24,250 yuan/mt. In early trading, bears added to open interest, and SHFE zinc fluctuated downward all the way, falling to a low below 24,140 yuan/mt. Its center then slightly rebounded, and it finally closed down at 24,140 yuan/mt, down 160 yuan/mt, or 0.66. Trading volume increased to 85,941 lots, while open interest rose by 2,465 lots to 75,191 lots.

[SMM Zinc Morning Comment] Overnight, the most-traded SHFE zinc 2604 contract opened at 24,360 yuan/mt. In early trading, SHFE zinc briefly touched a high of 24,390 yuan/mt, then quickly fell to a low of 24,205 yuan/mt. Thereafter, amid a tug-of-war between longs and shorts, SHFE zinc fluctuated rangebound and finally closed down at 24,240 yuan/mt, down 60 yuan/mt, or 0.25%. Trading volume decreased to 35,766 lots, while open interest increased by 1,359 lots to 74,085 lots.

[Macro Disturbances Coupled With Rising China Inventory Weighed on the Centers of Both SHFE and LME This Week] At the beginning of the week, Trump stated that the conflict in Iran was basically over, and the US dollar index fell sharply, pushing the center of LME zinc higher; subsequently, market uncertainty intensified, some funds exited, and LME zinc came under pressure......

[SHFE/LME Price Ratio Pulled Back and Fluctuated Around 7.3]: This week, the SHFE/LME price ratio pulled back and fluctuated around 7.3, and the zinc ingot import window remained closed. Outside China, easing inflation concerns boosted a rebound in zinc prices; subsequently, investors stayed cautious about an escalation of the Middle East conflict, while a stronger US dollar, together with US February CPI coming in line with expectations and still-sticky inflation, drove LME zinc to fluctuate lower.

[Repeated Macro Sentiment Led to Wide Swings in SHFE Zinc]: The most-traded SHFE zinc 2604 contract opened at 24,370 yuan/mt. SHFE zinc briefly rose in early trading to a high of 24,460 yuan/mt, after which bulls reduced their open interest, and SHFE zinc fluctuated downward with its center moving lower, eventually closing down at 24,300 yuan/mt, down 85 yuan/mt, or 0.35%. Trading volume increased to 109,000 lots, while open interest fell by 1,494 lots to 74,220 lots.

[Spot Premiums Recovered Slowly, but the Center Was Expected to Move Lower Next Week] This week, premiums in Guangdong rose by about 30 yuan/mt WoW. As of this Friday, mainstream 0# zinc in Guangdong was quoted at a discount of 80 yuan/mt, and the Shanghai-Guangdong price spread widened......

[SMM Zinc Morning Comment] The most-traded SHFE zinc 2604 contract opened lower with a gap at 24,245 yuan/mt. In early trading, SHFE zinc fluctuated and dipped to 24,095 yuan/mt. Subsequently, as bears reduced open interest, SHFE zinc gradually rose above the daily average line, touched a high of 24,385 yuan/mt near the close, and finally closed down at 24,375 yuan/mt, down 10 yuan/mt, or 0.04%. Trading volume decreased to 54,485 lots, and open interest increased by 94 lots to 74,314 lots.

[SMM Morning Meeting Summary: Affected by Macro Disturbances, LME Zinc Maintained Wide Swings] LME zinc opened at $3,316/mt. In early trading, LME zinc fluctuated upward and touched a high of $3,331.50/mt, after which prices fell rapidly. It then rose and recovered the losses, but during European trading hours, as bears reduced open interest, LME zinc quickly dipped to $3,284/mt. In the night session, amid a tug-of-war between longs and shorts, LME zinc gradually recouped the losses and returned to fluctuate above the average price line, finally closing down at $3,314.50/mt, down $1/mt, or 0.03%. Trading volume decreased to 82,887 lots, and open interest increased by 527 lots to 217,000 lots.

Secondary Zinc Oxide Production Fell in February, While Secondary Zinc Oxide Payables Remained Relatively Firm. What Trend Will Secondary Zinc Oxide Show in March?

[Supply Disruptions Persist, Imported TCs Continued to Decline]: Weekly data showed that the average weekly TC of SMM Zn50 domestic ore was unchanged at 1,550 yuan/mt in metal content, and the SMM imported zinc concentrate index fell $4.13/dmt MoM to $11.25/dmt...