[Domestic inventory continued to decline, SHFE zinc recorded a long lower shadow bearish candlestick] The most-traded SHFE zinc 2601 contract opened at 23,335 yuan/mt. At the beginning of the session, bears reduced their positions, and SHFE zinc fluctuated upward to near the daily average line. Subsequently, a tug-of-war between longs and shorts ensued, and SHFE zinc fluctuated rangebound along the daily average line. It finally closed down at 23,430 yuan/mt, falling 175 yuan/mt, a decrease of 0.74%. The trading volume decreased to 169,000 lots, and the open interest decreased by 8,072 lots to 83,302 lots.

[SMM Zinc Morning Comment] Last Friday, the most-traded SHFE zinc 2601 contract opened at 23,480 yuan/mt. In early trading, zinc briefly rose to a high of 23,600 yuan/mt, but then bulls reduced their positions, causing the price to plummet and hit a low of 23,205 yuan/mt by the end of the session. It finally closed down at 23,305 yuan/mt, falling 300 yuan/mt or 1.27%. Trading volume dropped to 120,000 lots, while open interest decreased by 4,925 lots to 86,449 lots.

[SMM Morning Meeting Summary: Macro Sentiment Fades, LME Zinc Declines] Last Friday, the LME zinc contract opened at $3,192/mt. In early trading, it fluctuated along the daily average line, then climbed to a high of $3,210/mt during European trading hours. Subsequently, during the night session, bears increased their positions, and LME zinc fluctuated downward, hitting a low of $3,117.5/mt toward the end of the session. It finally closed down at $3,139/mt, falling by $59/mt, a decline of 1.84%. Trading volume dropped to 18,376 lots, while open interest increased by 3,372 lots to 223,000 lots.

[Domestic Macro Improvement and US Fed Interest Rate Cut as Expected Drove Up SHFE and LME Zinc Prices This Week] At the beginning of the week, the market focused on the US Fed's interest rate cut decision, and LME zinc maintained a fluctuating trend; subsequently, the US reported 7.67 million job openings in October...

[Affected by environmental protection-driven production restrictions, operating rates for zinc oxide declined this week] This week, the operating rate for zinc oxide enterprises recorded 55.67%, down 0.78 percentage points MoM. On the raw material side, zinc prices rose significantly this week, market purchase willingness for zinc oxide plants was low, large plants had built up substantial stockpiles earlier, and small and medium-sized enterprises mostly engaged in just-in-time procurement due to weak end-use demand, thus raw material inventory basically held at last week's level...

[Operating rates decline due to profit impact, die-casting zinc alloy operating rates fall] This week, the operating rate of die-casting zinc alloy recorded 49.56%, down 1.51 percentage points WoW. In terms of inventory, zinc prices fluctuated at highs this week, procurement enthusiasm of die-casting zinc alloy enterprises weakened, while the shipment pace slowed down, some enterprises experienced slight inventory buildup, consequently, raw material inventory decreased, and finished product inventories increased.

[End-User Just-in-Time Procurement Expected Premiums and Discounts to Maintain Fluctuating Trend] This week, Guangdong premiums and discounts rose by around 15 yuan/mt WoW. As of Friday, mainstream 0# zinc was quoted at a discount of around 15 yuan/mt against the market, with the Shanghai-Guangdong price spread maintaining...

[Consumption remains resilient, galvanizing operating rates increase]: This week, the operating rate of galvanizing producers recorded 58.39%, up 0.19 percentage points WoW. On raw material inventory, early in the week, zinc prices pulled back slightly at the center, prompting downstream restocking in small amounts, and zinc ingot inventory increased.

[Zinc prices continued to surge significantly, market transactions weakened]: Spot premiums in the Tianjin area held steady WoW. As of Friday, domestic common brands were quoted at a discount of 40 yuan/mt to a premium of 100 yuan/mt against the 2601 contract, while premium brands were quoted at a premium of 110-130 yuan/mt against the 2601 contract. Tianjin prices were quoted at a discount of about 110 yuan/mt against Shanghai prices.

[Smelters mainly purchase domestic zinc ore, TCs continue to decline]: This week, domestic zinc concentrate TCs continued to decrease. On a weekly basis, the SMM Zn50 domestic weekly TC average fell by 250 yuan/mt in metal content MoM to 1,600 yuan/mt in metal content, while the SMM imported zinc concentrate index dropped by $7.19/dmt WoW to $50.56/dmt....