[How will the demand be in H2 after the galvanizing enterprises' operating rate moved downwards after a higher opening in H1?] In H1, tariff disputes continued, jointly boosting domestic consumption from multiple perspectives such as capital and demand. However, due to time constraints, the implementation speed has been relatively slow. According to communication with SMM, the operating rate of galvanising enterprises in H1 of 2025 moved downwards after a higher opening. What were the reasons?

[Zinc prices rose continuously during the week, while spot premiums/discounts in Guangdong continued to decline] This week, premiums/discounts in Guangdong continued to decline, falling by 60 yuan/mt WoW. As of Friday this week, the mainstream 0# zinc quotations in the Guangdong market were at discounts of 60~20 yuan/mt against the market, and the Shanghai-Guangdong price spread remained......

This week, the ferrous metals series initially stabilized before rallying strongly, approaching the gap position from early April. At the beginning of the week, overall price fluctuations were relatively small. In the latter half of the week, there were continuous discussions about "anti-rat race" competition in raw materials and finished steel products. First, there was news that "steel mills in Shanxi Province received notices on crude steel production restrictions, with a province-wide production cut target of 6 million mt," followed by the China State Railway Group responding to the "anti-rat race" call by canceling the policy of reducing railway freight rates for some railway bureaus, further pushing up coal and coke prices. Clearly, the cost logic was more favored by capital, with raw materials leading the gains in ferrous metals. In the spot market, amid high temperatures and heavy rainfall, end-use demand focused on purchasing as needed. However, the narrowing of the spot-futures price spread attracted long-short arbitrage and speculative demand to enter the market. In the short term, according to SMM survey tracking, under the pressure of environmental protection-driven production restrictions, pig iron production may continue to fluctuate and bottom out in the short term. However, some coking plants plan to increase prices next week, and cost support may remain relatively strong. For steel products, thanks to moderate spot transactions, inventory levels at the finished steel end decreased this week, and the elasticity of spot prices increased. Overall, in the short term, under the combined support of "anti-rat race" competition expectations and strong raw materials, market pessimism has improved somewhat. Meanwhile, the fundamental contradictions are not prominent, and participation in futures and spot markets has increased. Ferrous metals series prices may continue to hold up well next week, with attention paid to the pressure position of the gap above.