The SMM Imported Zinc Concentrate Index for this week is $53/dmt, with a 5.26% WoW increase. The SMM Imported Lead Concentrate average spot TC for this week is $-45/dmt.

As Q2 draws to a close, how has the overall consumption of zinc oxide been recently? This article will analyze the situation based on changes in operating rates and the demand performance of various downstream sectors.Firstly, data indicates that the operating rates of zinc oxide enterprises in China were lower in April and May compared to the same period last year. What are the reasons behind this? Below are the specifics for each sector......

[Galvanizing operating rates maintain fluctuating trend, with bearish outlook for subsequent demand]: This week, the operating rate of galvanising producers was recorded at 60.04%, an increase of 0.48 percentage points WoW. In terms of raw material inventory, zinc prices broke through and fell to a level more acceptable to downstream buyers this week. Downstream buyers increased restocking at lower prices, leading to an increase in zinc ingot inventory.

[Environmental Protection Checks Continue, Operating Rates of Zinc Oxide Enterprises Decline] This week, the operating rate of zinc oxide enterprises was recorded at 58.92%, down 0.59% WoW. On the raw material side, the center of zinc prices declined this week, with some zinc oxide enterprises conducting a small amount of restocking at lower prices. Raw material inventory increased WoW...

[SHFE/LME zinc price ratio continues to oscillate around 8.4, zinc ingot import window remains closed]: This week, the SHFE/LME zinc price ratio has continued to oscillate around 8.4, with the zinc ingot import window remaining closed. Overseas, macro data indicates a cooling in both US employment and inflation, with expectations for US Fed interest rate cuts within the year strengthening. Tensions in the Middle East have escalated, exacerbating geopolitical risks, and the US tariff dispute has resurfaced, putting continuous downward pressure on LME zinc.

[Consumption enters off-season, Guangdong premiums and discounts plummet] This week, premiums and discounts in Guangdong continued to decline, dropping by 110 yuan/mt WoW. As of Friday this week, the mainstream 0# zinc quotations in the Guangdong market were at premiums of 265~300 yuan/mt against the market, and the Shanghai-Guangdong price spread widened...

[Downstream Restocking at Lower Prices During the Week, Zinc Inventory Declined This Week] According to communication with SMM, as of Thursday this week (June 12), the total inventory of zinc ingots in seven regions tracked by SMM was 77,100 mt, a decrease of 2,200 mt from June 5 and a decrease of 4,600 mt from June 9. Domestic inventory recorded a decline...

[Basic and Macro Factors Continuously Intertwined, Zinc Prices Maintained Fluctuating Trend This Week] At the beginning of the week, LME zinc prices rose slightly; subsequently, China's social inventory continued the upward trend from last week, reaching 81,700 mt. The increase in supply led to a decline in both SHFE and LME zinc prices. Then, as the market remained nervous about the progress and outcome of the second round of negotiations between China and the United States, LME zinc prices continued to decline slightly; subsequently, representatives from both China and the United States indicated that the negotiations had made some progress, and trade tensions continued to ease, leading to a continuous rise in LME zinc prices...

[Production Resumptions at Enterprises, Coupled with Zinc Price Increase, Drive Up Operating Rate of Die-Casting Zinc Alloy] This week, the operating rate of die-casting zinc alloy reached 59.84%, up 6.16 percentage points WoW. On the raw material side, affected by the downward shift in the center of zinc prices this week, some die-casting zinc alloy enterprises restocked at lower prices, driving a MoM increase in raw material inventory. However, some enterprises in the market, anticipating a bearish outlook for zinc prices in the future, still focused on normal procurement and consumption of long-term contract deliveries...

[Fundamentals Indicate Strong Supply and Weak Demand, SHFE Zinc Declines During the Day]: The most-traded SHFE zinc 2507 contract opened at 22,000 yuan/mt. During the morning session, SHFE zinc oscillated around the daily average line, reaching a high of 22,090 yuan/mt. Subsequently, it declined steadily during the afternoon session, hitting a low of 21,745 yuan/mt near the close, and eventually closed down at 21,815 yuan/mt...