SMM5 13 th SMM0# Zinc Price spread by region

[Zinc Prices Fluctuated at Highs, Shanghai-Tianjin Price Spread Widened]: Spot premiums in Tianjin rose slightly this week, up 10 yuan/mt WoW. As of this Friday, in China, mainstream brands were quoted at discounts of around 80-120 yuan/mt against the 2605 contract, high-priced brands at discounts of around 60-90 yuan/mt against the 2605 contract, and Tianjin was quoted at a discount of around 50 yuan/mt against Shanghai, with the Shanghai-Tianjin price spread widening.

[SHFE/LME Price Ratio Pulled Back to Fluctuate Below 7.2]: This week, the SHFE/LME price ratio pulled back to fluctuate around 7.2, and the zinc ingot import window remained closed. Outside China, Powell released a dovish signal that long-term inflation expectations remained anchored, while LME Cash-3M shifted into a backwardation structure. Inventories outside China remained at low levels, cancelled warrants increased sharply, and LME zinc surged. On Friday, the LME zinc market was closed for a holiday.

[Environmental Protection in Northern China Affected Galvanizing Operating Rates]: This week, the operating rate of the galvanizing industry was 58.75, down 0.13 percentage points WoW. Raw material side, zinc prices fluctuated at highs this week, and galvanising enterprises mainly digested inventories, but with only small volumes of earlier price-fixed purchases and long-term contracts, zinc ingot inventories at galvanising enterprises edged down. The operating rate declined this week, mainly due to environmental protection-driven production restrictions in some northern regions, which affected operations.