[Zinc Price Center Shifts Up Significantly, but Lacking Bottom Support] The most-traded SHFE zinc 2602 contract opened higher with a gap at 23,435 yuan/mt. Early in the session, bulls increased positions, pushing zinc to rise quickly above the daily average and hit a high of 23,930 yuan/mt. Subsequently, bulls reduced positions and exited, causing the zinc price to drop back slightly. It finally closed up at 23,820 yuan/mt, an increase of 545 yuan/mt, or 2.34%. Trading volume decreased to 141,000 lots, while open interest increased by 3,363 lots to 89,942 lots.

[SMM Zinc Morning Comment] Last Wednesday, the most-traded SHFE zinc 2602 contract opened at 23,360 yuan/mt. After opening, SHFE zinc rose slightly and touched a high of 23,370 yuan/mt, then fell rapidly below the daily average line as bulls reduced their positions. At the end of the session, SHFE zinc recovered some losses and rose slightly as bears reduced their positions, finally closing down at 23,275 yuan/mt, a decrease of 105 yuan/mt, or 0.45%.

[SMM Morning Meeting Minutes: LME Zinc Records a Bullish Candlestick, Expected to Maintain Fluctuating Trend in the Short Term] Last Friday, the LME zinc contract opened at $3,116/mt, then fluctuated rangebound around the daily average, touching a low of $3,115/mt. During the session, bears reduced positions, and LME zinc fluctuated upward above the daily average, reaching a high of $3,142/mt before pulling back slightly below the daily average toward the close, ending up at $3,127/mt.

[New Year's Day holiday arrangements led to a decline in galvanizing operating rates]: This week, the operating rate of galvanizing producers was recorded at 52.98%, down 3.69 percentage points WoW. On the raw material inventory side, zinc ingot prices fluctuated at highs at the beginning of the week, with most traders closing their accounts for settlement. Downstream stockpiling had largely been completed earlier, and this week was mainly focused on digesting inventories, resulting in a decrease in zinc ingot inventory at galvanizing enterprises.

[Year-End Settlement, Sluggish Market Trading]: Spot premiums in Tianjin remained flat WoW. As of Wednesday, domestic generic brands were quoted at a premium of around 110 yuan/mt against the 2601 contract, while premium brands were quoted at a premium of 90–120 yuan/mt against the 2601 contract. Tianjin spot was quoted at a discount of around 110 yuan/mt against Shanghai spot, with the Shanghai–Tianjin price spread widening.

[SHFE/LME price ratio rebounded to around 7.5 and fluctuated]: This week, the SHFE/LME price ratio rebounded to around 7.5, and the zinc ingot import window remained closed. Overseas, the US Fed released the December meeting minutes, with most members supporting further interest rate cuts. Meanwhile, driven by copper and precious metals, LME zinc rose.

[Macro and Fundamentals Resonate, SHFE and LME Zinc Price Center Moves Higher] At the beginning of the week, the US dollar index retreated from highs, but LME zinc ingot inventory continued to increase, suppressing zinc prices, and LME zinc maintained a fluctuating trend...

[Enterprise Production Resumptions Coupled with Improved Orders from Large Plants, Zinc Oxide Plant Operating Rates Rose This Week] During the week, zinc prices trended higher, and coupled with relatively high coefficients for some raw materials, zinc oxide enterprises experienced a slight decline in raw material inventory...

[Environmental Protection Inspections Overlap with Enterprise Holidays, Die-Casting Zinc Alloy Operating Rates Decline] This week, zinc prices moved higher, coupled with some enterprises planning to take holidays during New Year's Day, leading to reduced procurement and a decline in raw material inventory...

[Zinc Price Center Moved Higher, Guangdong Premiums and Discounts Declined This Week] This week, Guangdong premiums and discounts decreased by around 10 yuan/mt WoW. As of Friday, mainstream 0# zinc was quoted at a discount of 5 yuan/mt against the market, and the Shanghai-Guangdong price spread narrowed...