[Die-Casting Zinc Alloy Operating Rate Continued to Rise, While Market Demand Was Still Awaiting Improvement] This week, die-casting zinc alloy enterprises in the market had basically resumed normal production, driving the operating rate higher. In terms of orders, orders in the Chinese market were mainly still in the stage of recovery and improvement, with demand performance relatively average, while some export orders remained weak......

[Weak Spot Demand During the Week, Wider Spot Discounts]: This week, spot discounts in Ningbo widened, with the weekly average price down 20 yuan/mt WoW. As of Friday this week, spot prices in Ningbo against the 2604 contract were at a discount of 100 yuan/mt and at a premium of 20 yuan/mt against Shanghai, with the premium against Shanghai fluctuating during the week..

[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.

[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...

[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......

[Operating Rates of Galvanising Producers Continued to Increase]: This week, the operating rate of the galvanizing industry was 53, up 13.94 percentage points WoW. Raw material side, zinc prices fluctuated this week, and zinc ingots previously price-fixed by galvanising enterprises arrived one after another, leading to a slight increase in zinc ingot inventory at galvanising enterprises.

[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.

[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.

[Environmental Protection Measures in Northern China Weighed, Overall Trading Was Average This Week]: Spot premiums in Tianjin were flat WoW this week. As of this Friday, in China, standard domestic brands were quoted at discounts of around 50-100 yuan/mt against the 2604 contract, high-priced brands at discounts of around 30-60 yuan/mt against the 2604 contract, and Tianjin was quoted at a premium of around 10 yuan/mt against Shanghai.