News

[Premiums and Discounts in Guangdong Fell Significantly and Are Expected to Remain Under Pressure and Decline Next Week] This week, premiums and discounts in Guangdong dropped by about 55 yuan/mt WoW. As of Friday, the mainstream 0# zinc was quoted at a discount of 60 yuan/mt in Guangdong, and the Shanghai-Guangdong price spread widened...

[Large Factories Enter Holiday Period, Zinc Oxide Operating Rates Drop Sharply by 8 Percentage Points] From the perspective of end-user orders, in the rubber-grade zinc oxide segment, major tire manufacturers are still operating, and enterprises report that end-user holidays last about one week, with demand relatively stable; demand for ceramic-grade zinc oxide and feed-grade zinc oxide is relatively weak...

[Affected by Enterprise Holidays, Die-Casting Operating Rates Continued to Decline] This week, the decline in operating rates was mainly due to some enterprises having already halted operations for holidays, while end-use demand also remained sluggish. Although zinc prices pulled back slightly toward the end of the week, downstream hardware factories observed numerous holidays, resulting in insufficient purchase willingness in the market.

[US Dollar Index Extends Gains, SHFE and LME Fluctuate Downward During the Week] At the beginning of the week, as investors weighed the policy outlook under Wash's leadership of the US Fed and the US manufacturing sector's return to expansion territory in January, the US dollar index extended its gains, and LME zinc's center moved lower...

[Smelter procurement sentiment remained low, TCs held steady in multiple regions]: On a weekly basis, the SMM Zn50 domestic weekly TC average was flat MoM at 1,500 yuan/mt in metal content, while the SMM imported zinc concentrate index fell $0.62/dmt MoM to $24.88/dmt...

[This Week's Zinc Futures Weakened as Traders Raised Spot Quotes]: This week, spot premiums in Shanghai rebounded, with the weekly average price up 5 yuan/mt WoW. As of Friday, spot domestic brand zinc was at a premium of 20 yuan/mt against the 2603 contract, while the high-priced brand Shuangyan was at a premium of 100 yuan/mt against the 2603 contract.

[Downstream enterprises entered holidays successively, spot trades sluggish]: Spot premiums in Ningbo were low this week, down 20 yuan/mt WoW from the weekly average price. As of Friday, spot prices in Ningbo against the 2603 contract were at a discount of 20 yuan/mt, while against Shanghai premiums were at a premium of 10 yuan/mt, with the premiums against Shanghai fluctuating during the week.

[SMM Zinc Morning Comment] Overnight, the most-traded SHFE zinc 2603 contract opened at 24,350 yuan/mt, initially dipping to 24,320 yuan/mt. Subsequently, bears reduced positions and exited, causing the price to gradually rebound and fluctuate higher, rising above the daily average line and touching a high of 24,615 yuan/mt. It hovered at highs near the close, finally settling up at 24,600 yuan/mt, an increase of 205 yuan/mt or 0.84% from the opening price.

[SMM Morning Meeting Summary: Precious Metals Decline and Inventory Drop, LME Zinc Maintains Fluctuating Trend] Overnight, the LME zinc contract opened at $3,324/mt, initially reaching a high of $3,327.5/mt before its center quickly dropped to $3,271.5/mt. During the European trading session, the price gradually rebounded with fluctuations, closing above the daily average line by the end of the session. It finally settled at $3,298.5/mt, down $7/mt, a decrease of 0.21%.

[Zinc Ingot Inventory Continues to Accumulate, Zinc Prices Weaken During the Day]: The most-traded SHFE zinc 2603 contract opened at 24,800 yuan/mt, touched a high of 24,815 yuan/mt early in the session, then fluctuated downward throughout, approaching a low of 24,390 yuan/mt near the close, and finally settled down at 24,395 yuan/mt, falling 375 yuan/mt, a decline of 1.51%.

The following table shows the ferrous and nonferrous metals movement on the SHFE and DCE on 05 Feb , 2026

According to the release from Ivanhoe Mines on February 3, Ivanhoe Mines is engaged in in-depth discussions with Gécamines and Mercuria, planning to supply critical minerals from the ultra-high-grade Kipushi zinc-lead-germanium-gallium mine to the US. Under the proposed agreement, Mercuria's current offtake of Kipushi zinc concentrates will be allocated to the trading division of Gécamines, and the excess production resulting from the successful debottlenecking and expansion of Kipushi in Q4 2025 will also be allocated. The concentrates produced from the Kipushi mine also contain significant amounts of germanium and gallium. Gécamines has the potential to be responsible for the sales of up to 50% of the mine's concentrate production, including sales to the US.

[SMM Zinc Morning Comment] Overnight, the most-traded SHFE zinc 2603 contract opened at 24,785 yuan/mt. At the beginning of the session, it surged to a high of 24,980 yuan/mt, but then bulls reduced their positions and exited the market, causing the contract to fluctuate downward and touch a low of 24,725 yuan/mt. It maintained fluctuations at lows toward the end of the session, ultimately closing down at 24,770 yuan/mt.