SMM Analysis:On April 10, China increased the tariff rate on imported goods originating from the US from 84% to 125%. On April 15, the White House released a fact sheet stating that Chinese products exported to the US would face tariffs of up to 245%...

SMM Analysis: How Will the Escalation of US-China Rivalry Impact China's Zinc Ore Market? On April 10, China increased the tariff rate on imported goods originating from the US from 84% to 125%. On April 15, the White House released a fact sheet stating that Chinese products exported to the US would face tariffs of up to 245%. The "tariff storm" of 2025 has once again unfolded, with escalating tariffs affecting global nerves...

Some export orders increased, and the operating rates of galvanising producers rose. This week, the operating rate of galvanising producers reached 64.34%, up 0.6 percentage points WoW. In terms of raw material inventory, zinc prices continued to pull back this week, but downstream sentiment remained bearish, with restocking or inventory consumption driven by rigid demand, leading to a slight drop in zinc ingot inventory.

This summary provides a snapshot of recent production updates at zinc smelters across China, based on information collected by SMM. The updates reflect near-term adjustments due to planned maintenance, technical upgrades, etc.

The following table shows the ferrous and nonferrous metals movement on the SHFE and DCE on 18 Apr, 2025

【Some Sectors Experienced Slowing Demand, Zinc Oxide Operating Rate Declined】 This week, the operating rate of zinc oxide recorded 60.79%, down 0.83% MoM. Raw material side, zinc prices maintained a fluctuating trend this week, with zinc oxide companies buying the dip in small amounts. Some companies had previously stockpiled at low prices, and are now mainly consuming inventory, resulting in a MoM decrease in raw material inventory. Finished product inventory side, zinc oxide companies currently maintain a basic balance between production and sales, with relatively small changes in finished product inventories...

Domestic Q1 GDP Achieves a "Stable Start," SHFE and LME Zinc Prices Maintain Fluctuating Trend. At the beginning of the week, LME zinc continued the fluctuating trend from the previous week. Subsequently, US Fed Governor Waller stated at an event that considering the inflationary impact of Trump's tariff policies on the US economy might be temporary, an interest rate cut is expected in H2 under a relatively small tariff scenario. Meanwhile, the US March New York Fed 1-year inflation release was higher than the previous value and expectations, leading to a decline in LME zinc...

This week, the contract rollover in Guangdong saw spot premiums/discounts rise. The premiums and discounts in Guangdong increased by 270 yuan/mt WoW. As of Friday, the mainstream 0# zinc quotations in Guangdong were at premiums of 415~465 yuan/mt against the market. The Shanghai-Guangdong price spread widened to 20 yuan/mt...