The SMM Imported Zinc Concentrate Index for this week is $66.48/dmt, with a 0.35% WoW increase. The SMM Imported Lead Concentrate average spot TC for this week is $-55/dmt, flat from the previous week's figure......

In the first half of the year (H1), tariff disputes persisted, jointly boosting domestic consumption from multiple perspectives such as capital and demand. However, due to time constraints, the implementation speed has been relatively slow. According to communication with SMM, the operating rates of galvanising producers in H1 2025 moved downwards after a higher opening. What were the reasons?

[How will the demand be in H2 after the galvanizing enterprises' operating rate moved downwards after a higher opening in H1?] In H1, tariff disputes continued, jointly boosting domestic consumption from multiple perspectives such as capital and demand. However, due to time constraints, the implementation speed has been relatively slow. According to communication with SMM, the operating rate of galvanising enterprises in H1 of 2025 moved downwards after a higher opening. What were the reasons?

[Zinc prices rose continuously during the week, while spot premiums/discounts in Guangdong continued to decline] This week, premiums/discounts in Guangdong continued to decline, falling by 60 yuan/mt WoW. As of Friday this week, the mainstream 0# zinc quotations in the Guangdong market were at discounts of 60~20 yuan/mt against the market, and the Shanghai-Guangdong price spread remained......

[Some enterprises halted production for maintenance, leading to a slight decline in zinc oxide operating rates this week] This week, the operating rate of zinc oxide was recorded at 55.84%, down 0.3% MoM. On the raw material side, zinc prices continued to rise this week, and zinc oxide enterprises mainly made just-in-time procurement, with raw material inventory slightly decreasing MoM...

Unlike the significant increase in zinc prices in the first half of 2024, the main SHFE zinc contract showed a downward trend in the first half of 2025. As of July 10, 2025, the main SHFE zinc contract had fallen by 11.56% on a half-yearly basis, and on April 7, it dropped to the lowest point of the half-year at 21,620 yuan/mt, hitting a new low in the past year.

[SHFE/LME price ratio pulls back and oscillates near 8.1, zinc ingot import window remains closed]: This week, the SHFE/LME price ratio pulled back and oscillated near 8.1, with the zinc ingot import window remaining closed. From an overseas perspective, the US announced the results of tariff hikes on various countries, which were largely in line with market expectations. Overseas LME inventory continued to decline to less than 110,000 mt. Coupled with the relatively resilient performance of overseas economic data, the LME0-3 structure shifted to a backwardation structure, with increased concentration of bullish capital, leading to a continuous upward trend in LME zinc.

[Fundamentals remain unchanged, with a slight inventory buildup in China] According to SMM's communication and understanding, as of Thursday (July 10) this week, the total zinc ingot inventory across seven locations tracked by SMM was 90,300 mt, an increase of 7,200 mt from July 3 and an increase of 1,200 mt from July 7, with domestic inventory recording an increase...

[Macro tariffs coupled with interest rate cut expectations, zinc prices maintained fluctuating trend this week] At the beginning of the week, US President Trump announced new tariffs on a series of countries including Japan and South Korea effective August 1, reigniting macro tariff disputes. The US dollar index surged significantly, while the LME zinc center continued to pull back...

[Production resumptions at large plants ended during the week, driving up operating rates of die-casting zinc alloy] This week, the operating rate of die-casting zinc alloy reached 49.14%, up 2.6 percentage points MoM. On the raw material side, zinc prices maintained a fluctuating trend this week. With current downstream demand weakening and some market enterprises still holding a certain bearish outlook on subsequent zinc prices, procurement was mainly driven by immediate needs, resulting in a MoM decrease in raw material inventories. Finished product inventories of enterprises remained basically flat MoM this week. The upward trend in the operating rate of die-casting zinc alloy this week was mainly driven by production resumptions at some enterprises, which boosted overall production...