[Domestic Macro Improvement and US Fed Interest Rate Cut as Expected Drove Up SHFE and LME Zinc Prices This Week] At the beginning of the week, the market focused on the US Fed's interest rate cut decision, and LME zinc maintained a fluctuating trend; subsequently, the US reported 7.67 million job openings in October...

[Affected by environmental protection-driven production restrictions, operating rates for zinc oxide declined this week] This week, the operating rate for zinc oxide enterprises recorded 55.67%, down 0.78 percentage points MoM. On the raw material side, zinc prices rose significantly this week, market purchase willingness for zinc oxide plants was low, large plants had built up substantial stockpiles earlier, and small and medium-sized enterprises mostly engaged in just-in-time procurement due to weak end-use demand, thus raw material inventory basically held at last week's level...

[Operating rates decline due to profit impact, die-casting zinc alloy operating rates fall] This week, the operating rate of die-casting zinc alloy recorded 49.56%, down 1.51 percentage points WoW. In terms of inventory, zinc prices fluctuated at highs this week, procurement enthusiasm of die-casting zinc alloy enterprises weakened, while the shipment pace slowed down, some enterprises experienced slight inventory buildup, consequently, raw material inventory decreased, and finished product inventories increased.

[End-User Just-in-Time Procurement Expected Premiums and Discounts to Maintain Fluctuating Trend] This week, Guangdong premiums and discounts rose by around 15 yuan/mt WoW. As of Friday, mainstream 0# zinc was quoted at a discount of around 15 yuan/mt against the market, with the Shanghai-Guangdong price spread maintaining...

[Consumption remains resilient, galvanizing operating rates increase]: This week, the operating rate of galvanizing producers recorded 58.39%, up 0.19 percentage points WoW. On raw material inventory, early in the week, zinc prices pulled back slightly at the center, prompting downstream restocking in small amounts, and zinc ingot inventory increased.

[Zinc prices continued to surge significantly, market transactions weakened]: Spot premiums in the Tianjin area held steady WoW. As of Friday, domestic common brands were quoted at a discount of 40 yuan/mt to a premium of 100 yuan/mt against the 2601 contract, while premium brands were quoted at a premium of 110-130 yuan/mt against the 2601 contract. Tianjin prices were quoted at a discount of about 110 yuan/mt against Shanghai prices.

[Smelters mainly purchase domestic zinc ore, TCs continue to decline]: This week, domestic zinc concentrate TCs continued to decrease. On a weekly basis, the SMM Zn50 domestic weekly TC average fell by 250 yuan/mt in metal content MoM to 1,600 yuan/mt in metal content, while the SMM imported zinc concentrate index dropped by $7.19/dmt WoW to $50.56/dmt....

[Shanghai Spot Supply Remained Tight This Week, Focus on Cross-Regional Flow of Zinc Ingots]: Shanghai spot zinc prices continued to rise this week, with the weekly average price up 15 yuan/mt WoW. As of Friday, spot cargoes of ordinary domestic brands traded at a premium of 200–220 yuan/mt against the 2601 contract, while high-priced brand Shuangyan had no offer against the 2601 contract.

[SHFE/LME price ratio continued to fluctuate near 7.4]: This week, the SHFE/LME price ratio continued to fluctuate near 7.4, and the zinc ingot import window remained closed. Overseas, the US Fed cut interest rates by 25 basis points as expected at its December meeting, and subsequent remarks from Powell did not turn hawkish. Meanwhile, US initial jobless claims hit their highest level since March 2020, the US dollar index fell, and LME zinc rose.

[Zinc Ingot Spot Supply Remains Tight, Premiums Stay High During the Week]: Spot premiums in Ningbo fluctuated at highs this week, up 30 yuan/mt WoW. As of Friday, spot prices in Ningbo against the 2601 contract were at a premium of 165 yuan/mt, while the premium against Shanghai stood at 100 yuan/mt, fluctuating at highs during the week.