[Production Resumptions at Enterprises During the Week, Operating Rate of Die-Casting Zinc Alloy Rises This Week] This week, the operating rate of die-casting zinc alloy reached 53.68%, up 4.87 percentage points WoW. On the raw material side, zinc prices maintained a fluctuating trend overall this week. Meanwhile, downstream demand weakened after the Dragon Boat Festival. Die-casting zinc alloy enterprises mainly made just-in-time procurement, and raw material inventory decreased WoW...

[Traders faced difficulties in shipping cargo during the week, with spot premiums/discounts continuously declining] This week, spot premiums in Guangdong declined, dropping by 55 yuan/mt WoW. As of Friday this week, the mainstream 0# zinc quotations in the Guangdong market were at premiums of 265~345 yuan/mt against the market, and the Shanghai-Guangdong price spread narrowed...

[Downstream Procurement Demand Slows Down, Social Inventory of Zinc Increases] According to communication with SMM, as of Thursday (June 5), the total inventory of zinc ingots across seven locations tracked by SMM was 79,300 mt, an increase of 4,300 mt from May 29 and an increase of 1,900 mt from June 3. Domestic inventory recorded an increase...

[Macro sentiment dominated by risk aversion, center of zinc prices on SHFE and LME moved upward] At the beginning of the week, LME zinc maintained the volatile trend of the previous week; subsequently, the "steel tariff" imposed by the Trump administration escalated global trade tensions, while the intensification of the Russia-Ukraine conflict earlier also led to a rapid rise in geopolitical risks, continuously strengthening market risk aversion and driving LME zinc prices higher; however, the subsequent conclusion of direct negotiations between Russia and Ukraine, as well as news of possible direct consultations between heads of major powers, weakened market risk aversion. Meanwhile, the US dollar index continued to strengthen, causing LME zinc to drop back slightly...

[Consumption in Some Sectors Gradually Weakens, Operating Rate of Zinc Oxide Declines] This week, the operating rate of zinc oxide enterprises was recorded at 59.50%, down 0.57% WoW. On the raw material side, zinc prices maintained a fluctuating trend during the week. Although some raw material prices dropped back slightly recently, enterprises still focused on just-in-time procurement, with relatively small changes in raw material inventories. In terms of finished product inventories, the demand for some end-user orders has slowed down recently, and the speed of downstream cargo pick-up has decreased. As a result, finished product inventories of zinc oxide enterprises have increased slightly...

[SHFE/LME Price Ratio Pulls Back to Near 8.4, Zinc Ingot Import Window Closes]: This week, the SHFE/LME price ratio pulled back to near 8.4, and the zinc ingot import window closed. From an overseas perspective, the "steel tariffs" imposed by the Trump administration once again escalated global trade tensions. Coupled with the intensification of the Russia-Ukraine conflict, geopolitical risks rose rapidly, and market risk-averse sentiment continued to strengthen, driving up LME zinc prices.

[Increased Offers for Imported Zinc Ore, TCs Continue to Rise]: Zinc concentrate TCs increased MoM during the week. The average weekly SMM Zn50 domestic TC remained flat MoM at 3,600 yuan/mt (metal content). The SMM imported zinc concentrate index rose by $3.85/dmt MoM to $50.35/dmt...

[Galvanising Enterprises Resume Normal Operations After Holiday, Operating Rates of Galvanising Producers Rise]: This week, the operating rates of galvanising producers reached 59.58%, up 7.41 percentage points WoW. In terms of raw material inventory, zinc prices fluctuated this week. Downstream enterprises mainly relied on long-term contracts or only purchased based on immediate needs, leading to a slight decline in zinc ingot inventory.

[Premiums Continue to Decline Amid Weak Downstream Consumption]: This week, spot premiums in Tianjin declined slightly, falling by approximately 40 yuan/mt WoW. As of Friday this week, domestic common brands were quoted at premiums of 240-310 yuan/mt against the 2507 contract, while high-end brands were quoted at premiums of 340-400 yuan/mt against the 2507 contract. Tianjin was quoted at a discount of approximately 80 yuan/mt against Shanghai, with contract rollover quotes offered during the week.

[Weakening Spot Premiums for Domestic Zinc Ingot Long-Term Contract Arrivals in Ningbo This Week]: This week, spot premiums for zinc ingot in Ningbo weakened, decreasing by 40 yuan/mt compared to the weekly average price WoW. As of Friday this week, spot prices against the 2507 contract in Ningbo were quoted at a premium of 405 yuan/mt, and against the SHFE, the premium was 60 yuan/mt. The premium against the SHFE maintained a fluctuating trend during the week...