Domestic Macro Meetings Released Positive Signals, SHFE Zinc Recorded a Three-Day Winning Streak: The most-traded SHFE zinc 2506 contract opened at 22,860 yuan/mt. After opening, the center of SHFE zinc fluctuated around 22,810 yuan/mt. Subsequently, the bulls reduced their positions, causing SHFE zinc to briefly fall below the daily average line. It finally closed at 22,750 yuan/mt, up 160 yuan/mt, a gain of 0.71%. The trading volume increased to 203,000 lots, while the open interest decreased by 2,657 lots to 122,000 lots. SHFE zinc recorded a three-day winning streak, with the 40/60 daily average lines acting as resistance above and the 5/10 daily average lines providing support below.

【Limited Increase in TCs, Focus on Subsequent Actual Negotiation Results】: In May, domestic zinc concentrate TCs continued to rise. The SMM monthly average TC for domestic zinc concentrates increased by 50 yuan/mt (metal content) MoM to 3,500 yuan/mt (metal content), while the SMM Zn50 monthly average TC for imported zinc concentrates rose by $5/dmt MoM to $45/dmt. On a weekly basis, the SMM Zn50 weekly average TC for domestic zinc concentrates remained flat at 3,450 yuan/mt (metal content) WoW, and the SMM Zn50 weekly average TC for imported zinc concentrates increased by $5/dmt WoW to $40/dmt....

Zinc prices continued to rise, while spot transactions were moderate. In Shanghai, the premium of quotations showed a downward trend this week, down 5 yuan/mt WoW. As of Friday, the premium of ordinary domestic brands against the 2505 contract was 170 yuan/mt, while the premium of the high-priced brand Shuangyan against the 2505 contract was 240 yuan/mt.

【Low-Price Pre-Sale of Imported Zinc Ingots, Struggling to Rise in Domestic Premiums in Ningbo】: Spot premiums in Ningbo fluctuated this week, with the weekly average price down 55 yuan/mt WoW. As of this Friday, spot prices against the 2505 contract in Ningbo were quoted at a premium of 175 yuan/mt, on par with the Shanghai premium.

The following table shows the ferrous and nonferrous metals movement on the SHFE and DCE on 25 Apr, 2025

【Market Arrivals Were Limited, Spot Premiums/Discounts Rose】This week, premiums and discounts in Guangdong rose, up by around 95 yuan/mt WoW. As of Friday, mainstream 0# zinc quotations in Guangdong were at premiums of 480~520 yuan/mt against the market, and the Shanghai-Guangdong price spread widened to 60 yuan/mt......

【Trade Landscape Warms Up Amid Mine Disturbances, SHFE and LME Price Centers Steadily Rise】At the beginning of the week, LME zinc was closed for a day due to Easter; then, influenced by macro uncertainties, LME zinc slightly declined; subsequently, as Trump continued to criticize Powell, market confidence was somewhat shaken, but Trump later stated that he had no intention of firing Powell, easing market tension. Additionally, the White House signaled a relaxation in trade tensions, and macro market sentiment improved. Meanwhile, disturbances in overseas mines resurfaced, driving LME zinc to continue its upward trend...

Demand from tyre factories slowed, and the operating rate of zinc oxide declined. This week, the operating rate of zinc oxide recorded 59.77%, down 1.01% MoM. Raw material side, the center of zinc prices rose this week, and prices of various raw materials remained high. Zinc oxide enterprises mainly made just-in-time procurement, and raw material inventory decreased MoM. Finished product inventories side, downstream demand weakened, and the pace of cargo pick-up slowed. Additionally, some enterprises had holiday arrangements during the May Day period, leading to an increase in finished product inventories MoM.