[TC Continues to Rebound, SHFE Zinc Price Center Moves Downward] The most-traded SHFE zinc 2507 contract opened at 22,320 yuan/mt. Early in the session, bulls reduced their positions, causing SHFE zinc to quickly decline and oscillate below the daily average line. During this period, it dipped to a low of 21,500 yuan/mt. The contract eventually closed down at 22,225 yuan/mt, a drop of 270 yuan/mt or 1.02%. Trading volume decreased to 182,000 lots, while open interest fell by 2,766 lots to 117,000 lots.

[Arrivals remain low in some regions, and social inventory continues to decline] According to communication with SMM, as of Thursday (May 29), the total zinc ingot inventory across the seven regions monitored by SMM was 75,000 mt, a decrease of 5,400 mt from May 22 and a decrease of 3,800 mt from May 26. Domestic inventory recorded a decline...

[Domestic Smelters Extend Maintenance Period, Zinc Prices Rise During the Week] At the beginning of the week, LME zinc market was closed for one day; subsequently, due to the lingering uncertainty surrounding Trump's tariff policies and the increasing likelihood of a delayed interest rate cut by the US Fed, LME zinc prices declined; then, as the US Conference Board's Consumer Confidence Index for May exceeded expectations and the US dollar index rose, while overseas inventories continued to decline, LME zinc maintained a fluctuating trend...

[Zinc oxide producers have holiday arrangements, with operating rates slightly weakening this week] This week, the operating rate of zinc oxide producers was recorded at 60.08%, down 1.96% WoW. On the raw material side, the center of zinc prices slightly increased this week, and zinc oxide producers made just-in-time procurement. Meanwhile, affected by the recent shortage of some raw materials, it was relatively difficult for zinc oxide producers to procure raw materials, and raw material inventories slightly decreased WoW. On the finished product inventories side, due to the 1-3 day holiday arrangements for a small number of zinc oxide producers during the Dragon Boat Festival, the finished product inventories of enterprises increased WoW...

[Spot premiums/discounts continue to rise, while market trading remains sluggish] This week, premiums and discounts in Guangdong region increased, rising by approximately 105 yuan/mt WoW. As of Friday this week, the mainstream 0# zinc quotations in the Guangdong market were at premiums of 500~560 yuan/mt against the market, and the Shanghai-Guangdong price spread widened...

[Die-casting zinc alloy enterprises have holiday arrangements, with a significant decline in operating rates this week] This week, the operating rate of die-casting zinc alloy enterprises was recorded at 48.81%, down 7.60 percentage points WoW. On the raw material side, the center of zinc prices moved upwards this week, coupled with relatively high spot premiums/discounts in the market, leading to a decrease in enterprises' stocking demand and a reduction in raw material inventories. In terms of finished product inventories, due to holiday arrangements for the Dragon Boat Festival at many enterprises, there was a slight increase in enterprises' finished product inventories. The decline in the operating rate of die-casting zinc alloy enterprises this week was mainly due to holiday arrangements of 1-3 days for the Dragon Boat Festival at many enterprises, resulting in an overall decrease in production...

[SHFE/LME price ratio maintained near 8.5, zinc ingot import window closed]: This week, the SHFE/LME price ratio was maintained near 8.5, and the zinc ingot import window was closed. Overseas, due to the continued uncertainty surrounding Trump's tariff policies and the increasing likelihood of a delay in the US Fed's interest rate cut, the US Fed explicitly warned of stagflation risks. After a decline, LME zinc maintained a fluctuating trend.

[Galvanising Enterprises Mostly Arranged Holidays During Dragon Boat Festival, Operating Rates of Galvanising Producers Declined]: This week, the operating rate of galvanising producers was recorded at 52.17%, a decrease of 9.86 percentage points WoW. In terms of raw material inventory, zinc prices fluctuated upward this week. Prices pulled back at the beginning of the week, prompting some downstream enterprises to restock slightly, leading to a slight increase in zinc ingot inventory. The main reason for the decline in operating rates this week was that the end of the week coincided with the Dragon Boat Festival holiday, with most enterprises arranging holidays lasting 1-2 days, and a few enterprises arranging a 3-day holiday, which affected production.

[Slight Decline in Premiums, Moderate Market Transactions]: This week, spot premiums in Tianjin declined slightly, dropping by approximately 5 yuan/mt WoW. As of Friday this week, domestic common brands were quoted at premiums of around 150-230 yuan/mt against the 2506 contract, while high-end brands were quoted at premiums of 230-260 yuan/mt against the 2506 contract. The premium in Tianjin over Shanghai was around 10 yuan/mt.

[Import Arrivals Coincide with Smelter Maintenance, TCs Continue to Rise in June]: Zinc concentrate TCs increased WoW. The average weekly SMM Zn50 domestic TC rose by 100 yuan/mt (metal content) WoW to 3,600 yuan/mt (metal content), while the average weekly SMM Zn50 imported TC remained flat WoW at $45/dmt...