[SHFE/LME price ratio pulled back to fluctuate around 7.6, zinc ingot import arbitrage window remained closed]: This week, the SHFE/LME price ratio pulled back to fluctuate around 7.6, and the zinc ingot import arbitrage window continued to close. Overseas, US August PPI data fell short of expectations, coupled with a surge in initial jobless claims, both reinforced market expectations for the US Fed to cut interest rates. Meanwhile, LME inventory continued destocking, and LME zinc was strongly supported and continued to rise.

[Interest Rate Cut Expectations Continue to Heat Up, SHFE and LME Zinc Prices' Center Rises] At the beginning of the week, the market continued to digest the US non-farm payrolls data that fell far below expectations, and LME zinc extended last Friday's fluctuating trend; subsequently, affected by ongoing disputes in certain international regions, LME zinc came under pressure and experienced a slight decline...

[Large plants operated normally during the week, operating rates of zinc oxide enterprises rose] The operating rate of zinc oxide producers recorded 57.21% this week, up 2.72 percentage points WoW. Raw material side, zinc prices maintained a fluctuating trend during the week, and most zinc oxide enterprises made just-in-time procurement. Meanwhile, some raw materials were in tight supply in the market, leading to limited availability. Enterprises faced higher procurement costs, and raw material inventory saw a slight decline this week.

[North basically resumed production, operating rates of galvanising producers rose]: This week, the operating rate of galvanizing producers recorded 56.06%, up 5.98 percentage points WoW. On the raw material inventory side, zinc ingots previously priced were gradually picked up and delivered, coupled with the arrival of long-term contracts from large plants, zinc ingot inventory increased slightly.

[Tianjin Resumes Production, Premiums Show No Improvement]: Spot premiums in the Tianjin area edged down this week, decreasing by 5 yuan/mt WoW. As of Friday, domestic standard brands were quoted at discounts of 30–80 yuan/mt against the 2510 contract, while premium brands were quoted at discounts of 20–30 yuan/mt against the 2510 contract, with Tianjin market at a discount of around 20 yuan/mt against the Shanghai market.

[Despite Weak Consumption, Some Enterprises Resumed Production; Die-Casting Zinc Alloy Operating Rates Rose This Week] This week, the operating rate of die-casting zinc alloy reached 53.99%, up 2.99 percentage points WoW. Raw material side, zinc prices maintained fluctuating trend this week, coupled with no significant improvement in end-use demand, enterprises mainly relied on long-term contract deliveries, spot order procurement decreased, and raw material inventory declined...

[Weak Consumption and Ample Spot Supply Drove Down Guangdong Premiums] Guangdong premiums fell by around 25 yuan/mt WoW. As of Friday, mainstream #0 zinc spot quotations in Guangdong were at discounts of 145~105 yuan/mt against the market, while the Shanghai-Guangdong price spread widened...

[Imported Zinc Concentrate TCs Continue to Rise, with Thin Trading During the Week]: On a weekly basis, the average SMM Zn50 domestic weekly TC remained flat MoM at 3,850 yuan/mt in metal content, while the SMM Imported Zinc Concentrate Index rose $2.5/dmt MoM to $98.75/dmt....

[Traders sold passively with mediocre performance in trading]: Spot discounts in Ningbo narrowed slightly this week, up 5 yuan/mt WoW. As of Friday, spot prices in Ningbo were at a discount of 25 yuan/mt against the 2510 contract and a premium of 40 yuan/mt against Shanghai prices, while the premium against Shanghai maintained a fluctuating trend during the week...