News

[Chinese New Year Stockpiling Largely Completed, Domestic TCs Remain Stable]: On a weekly basis, the SMM Zn50 domestic weekly TC average price held flat WoW at 1,500 yuan/mt in metal content, while the SMM imported zinc concentrate index fell $4.25/dmt WoW to $25.5/dmt....

[Some Downstream Plants Started Holidays, Spot Trades Sluggish]: The Shanghai spot offer premium continued its decline this week, down 35 yuan/mt WoW. As of Friday, the premium for common domestic brands was at a discount of 30 yuan/mt against the 2603 contract, while the premium for the high-priced brand Shuangyan was at a premium of 20 yuan/mt against the 2603 contract.

[Zinc Prices Rose to Over Three-Year Highs, Premiums Continued to Decline]: Spot premiums in Ningbo continued to decline this week, down 30 yuan/mt WoW from the weekly average price. As of Friday, spot prices in Ningbo against the 2602 contract were at a premium of 10 yuan/mt, and against Shanghai prices at a premium of 20 yuan/mt, fluctuating within the week.

[SHFE/LME price ratio still fluctuating below 7.6]: This week, the SHFE/LME price ratio continued to fluctuate below 7.6, keeping the zinc ingot import window closed. Overseas, the US dollar fell to a four-month low, supporting non-ferrous metals, while geopolitical tensions and rising precious metals drove zinc prices higher, with LME zinc surging. However, due to the US Fed's hawkish signals prompting a dollar rebound, LME zinc gave back gains and edged lower.

[SMM News] The mainstream transaction price of Guangdong 0# zinc was 25,580-26,200 yuan/mt, with mainstream brands quoted at a discount of 25 yuan/mt against the 2603 contract, and the Shanghai-Guangdong price spread narrowed. Zinc prices continued to fluctuate at highs, but downstream purchasing momentum remained insufficient due to high prices and terminal holidays, resulting in sluggish market transactions. Traders continuously lowered premiums and discounts to facilitate shipments, yet transactions remained sparse. As a result, Guangdong's premiums and discounts saw a significant decline today.

[SMM Express] This week, the operating rate for zinc oxide was 58.52%, down 0.14 percentage points WoW. Inventory side, zinc prices rose significantly during the week, and zinc oxide enterprises purchased cautiously due to fear of high prices, leading to a slight decrease in raw material inventory. Meanwhile, finished product inventories increased noticeably as some enterprises plan to undergo extended maintenance. Next week, more enterprises are expected to take holidays, and the zinc oxide operating rate is projected to decline further to around 58.15%.

[SMM Express] This week, the operating rate of die-casting zinc alloy was 46.37%, down 4.9 percentage points WoW. Inventory side, due to the significant rise in zinc prices and some enterprises gradually entering the Chinese New Year holiday, procurement decreased; however, affected by early delivery of long-term contracts at some enterprises, raw material inventory saw limited overall change. Finished product side, alloy plants faced relatively difficult shipments, and finished product inventories experienced a slight accumulation. Next week, the operating rate of die-casting zinc alloy is expected to continue declining to around 43.25%, and gradually decrease as more enterprises go on holiday.

[Market Sees Increase in Enterprises on Holiday, Die-Casting Zinc Alloy Industry Experiences Decline in Operations] Affected by high zinc prices, orders across downstream sectors are generally weak. Coupled with the successive holidays of hardware end-users, market demand is further suppressed...

[Few Enterprises on Holiday, Zinc Oxide Operations Relatively Stable] As the Chinese New Year approaches, pre-holiday stockpiling by some end-users has gradually concluded. Demand for feed-grade zinc oxide is gradually returning to normal, while demand for rubber-grade and electronic-grade zinc oxide remains generally stable overall.

[Zinc Prices Rise and Terminals Halt Operations, Guangdong Premiums and Discounts Expected to Face Pressure and Decline] This week, Guangdong premiums and discounts increased slightly by about 5 yuan/mt WoW. As of Friday, the mainstream #0 zinc was quoted at a discount of 25 yuan/mt against Guangdong, and the Shanghai-Guangdong price spread narrowed...

[Galvanising enterprises enter holiday pace, operating rates drop sharply]: This week, the operating rate in the galvanizing industry was 46.09%, down 9.54 percentage points WoW. Raw material side, zinc prices continued to rise this week, downstream buyers were cautious due to high prices, but with the arrival of long-term contract shipments, zinc ingot inventories at galvanising enterprises saw a slight rebound.

[Zinc Prices Surged Sharply with Thin Trading]: Spot premiums in Tianjin continued to decline this week, down 25 yuan/mt WoW. As of Friday, domestic common brands were quoted at a discount of 50–100 yuan/mt against the 2603 contract, while premium brands were quoted at a discount of 10–100 yuan/mt against the 2603 contract. Tianjin prices were at a discount of about 50 yuan/mt against Shanghai prices, with quotations made during the contract rollover this week.

[SMM Zinc Morning Comment] Overnight, SHFE zinc recorded a long upper shadow bearish candlestick, with various moving averages providing support below. Overnight, LME led SHFE zinc to lead the gains in nonferrous metals. On the fundamentals side, social inventory remains low, and...

[SMM Morning Meeting Minutes: LME Zinc Records Five-Day Winning Streak, High Reaches New Peak Since August 2022] Overnight, the LME zinc contract recorded a long upper shadow bearish candlestick, reaching a new high since August 2022, with the MACD bullish candlestick expanding. Overnight, LME zinc showed strong momentum, but during the night session, due to the US Fed releasing hawkish signals and the US dollar rebounding, nonferrous and precious metals plummeted significantly. However, LME zinc inventory continued destocking, and...