According to SMM data, zinc ingot inventory in Guangdong continued to climb to a yearly high as of Monday, reaching 36,900 mt. The substantial pressure from high inventory directly impacted trading sentiment and pricing trends in the spot market, causing premiums and discounts to fluctuate at lows recently, which has become a focal point for market attention. Below, we will analyze the future development of premiums and discounts in Guangdong from both supply and demand perspectives.

[SMM Zinc Morning Comment] Overnight, the LME zinc contract opened at $2,862.5/mt. In early trading, the price center rose to a high of $2,889/mt. During European trading hours, bears increased their positions, pushing LME zinc down to a low of $2,856/mt...

[SMM Morning Meeting Summary: Stronger Expectations for September Interest Rate Cut as LME Zinc Daily Candlestick Center Rises] Overnight, the LME zinc contract opened at $2,862.5/mt. In early trading, the center of LME zinc prices rose to a high of $2,889/mt. During European trading hours, bears increased positions, pushing LME zinc down to a low of $2,856/mt. In the night session, LME zinc recovered some losses and rose above the daily average line, finally closing up at $2,873/mt, an increase of $15.5/mt (0.54%). Trading volume rose to 95,398 lots, while open interest increased by 1,742 lots to 201,000...

[SMM Zinc Morning Comment] Last Friday, the most-traded SHFE zinc 2510 contract opened at 22,250 yuan/mt. After opening, bears reduced positions, pushing the contract to a high of 22,350 yuan/mt. Subsequently, bears increased positions, driving the contract below the daily average line to a low of 22,150 yuan/mt...

[SMM Morning Meeting Summary: Non-Farm Payrolls Data Disappoints as LME Zinc Records a Bullish Candlestick] Last Friday, LME zinc opened at $2,841.5/mt. In early trading, it dipped to a low of $2,836.5/mt before steadily rising above the daily average line to touch a high of $2,885/mt. During the night session, it pulled back below the daily average line, ultimately closing up at $2,857.5/mt, an increase of $19.5/mt (0.69%). Trading volume decreased to 87,907 lots, while open interest rose by 1,037 lots to 199,000.

The SMM Imported Zinc Concentrate Index for this week is $96.25/dmt, with a 2.67% WoW increase. The SMM Imported Lead Concentrate average spot TC for this week is $-90/dmt, unchanged WoW.

[SHFE Zinc Maintains Fluctuating Trend, Focus on Subsequent Downstream Consumption Performance]: The most-traded SHFE zinc 2510 contract opened at 22,075 yuan/mt. At the beginning of the session, it dipped to 22,065 yuan/mt, then fluctuated upward throughout the session. After touching a high of 22,220 yuan/mt towards the close, it pulled back slightly and finally settled at 22,155 yuan/mt, up 85 yuan/mt (0.39%).

[Smelters mainly purchased domestic zinc ore, focusing on subsequent TC results across regions]: Domestic zinc concentrate TCs edged down this week. The weekly average SMM Zn50 domestic TC fell 50 yuan/mt in metal content MoM to 3,850 yuan/mt in metal content, while the SMM imported zinc concentrate index rose $2.5/dmt WoW to $96.25/dmt...

[Limited Spot Supply and Narrowing Spot Discounts]: Spot discounts in Ningbo continued to narrow this week, up 25 yuan/mt WoW. As of Friday, spot prices against the 2510 contract stood at a discount of 25 yuan/mt in Ningbo, while the premium against Shanghai prices widened to 40 yuan/mt, with the Shanghai premium expanding persistently throughout the week...

[Downstream Purchases at Low Prices, Premiums Slightly Adjusted]: Spot prices in Shanghai edged up this week, with the weekly average price rising by around 5 yuan/mt WoW. As of Friday, standard domestic brands were at a discount of 20-10 yuan/mt against the 2510 contract, while the premium brand Shuangyan traded at a premium of 140 yuan/mt against the 2510 contract...