News

[SHFE/LME price ratio pulled back to fluctuate near 7.1] This week, the SHFE/LME zinc price ratio pulled back to fluctuate near 7.1, and the zinc ingot import window remained closed. Overseas, although strong non-farm payrolls prompted the market to scale back bets on US Fed interest rate cuts, US retail sales unexpectedly stalled in December, geopolitical risks persisted, and LME social inventory continued to draw down, providing price support. LME zinc consistently fluctuated at highs.

[Non-Farm Payrolls Data Exceed Expectations, SHFE and LME Zinc Prices Pull Back] At the beginning of the week, the gradual digestion of macro sentiment led to a decline in LME zinc; however, continued destocking of overseas LME zinc inventory provided bottom support for prices. Subsequently, as the market continued to await the delayed release of non-farm payrolls and CPI data, trading activity became more cautious, and LME zinc maintained a fluctuating trend.

[Enterprise Shutdowns and Holidays, Zinc Oxide Operating Rates Continue to Decline] Order-wise, pre-holiday stockpiling by end-users across various sectors has largely concluded, with overall market trading remaining subdued and zinc oxide demand showing mediocre performance. Looking ahead to next week, the industry is expected to enter a full holiday cycle, with only a few large plants maintaining minimal production during the Chinese New Year period, while the majority of zinc oxide enterprises will gradually suspend operations for the holiday.

[Operating Rates Down Over 20 Percentage Points MoM, Die-Casting Zinc Alloy Enters Chinese New Year Lull] This week, operating rates of die-casting zinc alloy producers fell sharply, mainly due to concentrated holiday arrangements at large plants during the week, leading to a sharp drop in operating rates. It is expected that next week, enterprises still in production will also arrange holidays successively by the end of this week, and operating rates of die-casting zinc alloy producers will decline further...

[The spot market was sluggish this week, and premiums and discounts continued to decline] This week, premiums and discounts in Guangdong decreased by about 55 yuan/mt WoW. As of Friday, the mainstream #0 zinc was quoted at a discount of 60 yuan/mt against Guangdong, and the Shanghai-Guangdong price spread widened...

[Chinese New Year Holiday Approaches, Zinc Concentrate Market Sluggish] On a weekly basis, the SMM Zn50 domestic weekly TC average price remained flat MoM at 1,500 yuan/mt in metal content, while the SMM imported zinc concentrate index decreased by $0.53/dmt MoM to $24.35/dmt.

[Chinese New Year Approaches, Trading Activity Slows During the Week]: Spot premiums in Shanghai fluctuated this week, with the weekly average price rising 10 yuan/mt WoW. As of Friday, spot prices for common domestic brands against the 2603 contract were at a premium of 40-50 yuan/mt, while the premium brand Shuangyan had no offers against the 2603 contract.

According to an announcement issued by the Ministry of Finance and the State Taxation Administration, starting from April 1, 2026, the VAT export tax rebates for products such as ceramics and PV will be fully abolished (the original rebate rates were mostly 9%–13%).

[KZ Releases Q4 Report] On February 10, Korea Zinc released its Q4 2025 report. The report shows that the company's zinc ingot sales volume reached 590,700 mt in 2025, with an annual production plan completion rate of 94%, down 8% YoY. The target for 2026 is set at 600,000 mt.

The following table shows the ferrous and nonferrous metals movement on the SHFE and DCE on 12 Feb , 2026

[Galvanising enterprises mostly on holiday, operating rates drop significantly]: This week, the operating rate of the galvanizing industry was 16.25%, down 22.35 percentage points WoW. From the raw material side, zinc prices mainly fluctuated this week, but most downstream enterprises were on holiday, with pricing being the main activity and fewer cargo pick-ups. However, large plants had basically received long-term contract goods by the beginning of the week, and zinc ingot inventories at galvanising enterprises increased slightly.

Historically, domestic zinc concentrate production typically declines continuously from December to February each year. There are two main reasons: first, some mines undergo routine shutdowns in winter due to weather conditions; second, the Chinese New Year holiday falls early in the year, during which many mines suspend operations or conduct maintenance. As this year's Chinese New Year holiday approaches, how will these factors specifically affect domestic zinc concentrate supply？

[SMM Zinc Morning Comment] Overnight, the most-traded SHFE zinc 2604 contract opened at 24,780 yuan/mt. At the beginning of the session, zinc prices briefly rose, touching a high of 24,800 yuan/mt, but then bears increased their positions, causing prices to fluctuate downward. By the end of the session, zinc hit a low of 24,510 yuan/mt, and finally closed down at 24,535 yuan/mt, falling 105 yuan/mt, a decline of 0.43%. Trading volume decreased to 26,540 lots, while open interest increased by 2,781 lots to 81,650 lots.

[SMM Morning Meeting Minutes: LME Destocking Still Provides Support, LME Zinc Center Rises] Futures: Overnight, the LME zinc contract opened at $3,392/mt. Initially, with bulls and bears intertwined, LME zinc briefly pulled back to a low of $3,368.5/mt. Subsequently, as bulls increased their positions, LME zinc fluctuated upward, reaching a high of $3,458.5/mt during the night session. However, due to insufficient upward momentum, the price center pulled back, ultimately closing up at $3,418/mt, an increase of $20/mt or 0.59%. Trading volume rose to 10,803 lots, and open interest increased by 4,800 lots to 235,000 lots.