【Partial Smelter Maintenance Leads to Slight Increase in Domestic TCs in May】: This week, zinc concentrate TCs saw a slight increase. The weekly average SMM Zn50 domestic TC price rose by 50 yuan/mt (metal content) WoW to 3,500 yuan/mt (metal content), while the weekly average SMM Zn50 imported TC price remained flat WoW at $40/dmt...

["[Spot Premiums Decline, Expected to Continue Falling Next Week]: This week, spot premiums in Ningbo declined, with the weekly average price decreasing by 30 yuan/mt WoW. As of Friday this week, spot prices against the 2506 contract in Ningbo were quoted at premiums of 550-580 yuan/mt, and premiums against the SHFE were 70 yuan/mt, with the premium against the SHFE expanding during the week..."]

[Imported Zinc Ingot Inflow Leads to Pullback in Shanghai Spot Premiums]: This week, quoted premiums in the Shanghai region pulled back, with a WoW decrease of 50 yuan/mt from the weekly average price. As of Friday this week, premiums for ordinary domestic brands against the 2506 contract were quoted at 580-590 yuan/mt, while premiums for the high-end brand Shuangyan against the 2506 contract were quoted at 640 yuan/mt...

[SHFE/LME Price Ratio Climbs to 8.8, Zinc Ingot Import Window Opens]: This week, the SHFE/LME price ratio climbed to around 8.8, with the zinc ingot import window remaining open. Overseas, the final S&P Global US Services PMI for April came in at 50.8, lower than the previous reading and expectations, indicating a strong market risk-off sentiment and a slight uptick in LME zinc prices.

The following table shows the ferrous and nonferrous metals movement on the SHFE and DCE on 9 May, 2025

[Traders Face Difficulties in Selling Amid High Premiums; Guangdong Premiums Expected to Gradually Decline in the Future] This week, premiums and discounts in the Guangdong region rose, increasing by 45 yuan/mt WoW. As of Friday this week, the mainstream 0# zinc quotations in the Guangdong market were quoted at premiums of 450~520 yuan/mt over the market, and the Shanghai-Guangdong price spread remained on par with parity...

["[Macro Environment Improves, Zinc Prices Maintain Fluctuating Trend] At the beginning of the week, LME zinc was closed for a day due to a holiday. Subsequently, the final value of the US S&P Global Services PMI for April was recorded at 50.8, falling short of the previous value and expectations, leading to a strong risk-averse sentiment in the market and a slight uptick in LME zinc prices. Then, Trump indicated that a major announcement would be made before his trip to the Middle East, the content of which may not necessarily involve trade matters. Meanwhile, if subsequent tariff negotiations fail, the EU will impose tariffs on a large number of US goods. The international trade situation is fraught with uncertainties, and market concerns are growing, leading to a decline in LME zinc prices..."]

[Zinc Oxide Producers' Operating Rates Rise, but Terminal Orders May Weaken Slightly] This week, the operating rate of zinc oxide producers reached 59.77%, up 1.16% WoW. On the raw material side, zinc prices currently maintain a fluctuating trend, and zinc oxide producers primarily make just-in-time procurement of raw materials, leading to a decrease in raw material inventories. On the finished product side, enterprises with Labour Day holiday arrangements continue to deplete their finished product inventories, driving a reduction in finished product inventories...

[Enterprises Resume Production One After Another, Operating Rate of Die-Casting Zinc Alloy Rises] This week, the operating rate of die-casting zinc alloy reached 54.60%, up 5.59 percentage points WoW. On the raw material side, after the holiday, some die-casting zinc alloy enterprises conducted just-in-time procurement and continuously picked up goods to replenish the inventory consumed during the holiday. Therefore, the inventory changes of raw materials in enterprises were relatively small. On the finished product inventory side, the consumption of inventory by some enterprises during the Labour Day holiday drove down the finished product inventory...