Group 1: Investment Ratings - Unilateral: Neutral; Arbitrage: Inter - period positive spread [4] Group 2: Core Views - The rising absolute price of zinc has weakened the purchasing enthusiasm in the spot market, and both the spot premium and monthly spread have slightly declined. The supply pressure remains, with a 10% supply growth expected in June and a long - term high - supply growth rate in the second half of the year. The impact of Sino - US tariffs on consumption has not yet appeared, and the consumption is guaranteed. The comprehensive decline in inventory strongly supports the zinc price, but there is a risk of weakening consumption in June [3] Group 3: Summary of Key Data Spot Market - LME zinc spot premium is -$26.08/ton. SMM Shanghai zinc spot price is 22,790 yuan/ton, up 20 yuan/ton from the previous trading day, and the spot premium is 590 yuan/ton, up 70 yuan/ton. SMM Guangdong zinc spot price is 22,660 yuan/ton, down 50 yuan/ton, with a flat spot premium of 460 yuan/ton. SMM Tianjin zinc spot price is 22,760 yuan/ton, down 20 yuan/ton, and the spot premium is 560 yuan/ton, up 30 yuan/ton [1] Futures Market - On June 3, 2025, the main contract of SHFE zinc opened at 22,330 yuan/ton and closed at 22,180 yuan/ton, down 105 yuan/ton. The trading volume was 155,440 lots, down 26,261 lots, and the open interest was 122,728 lots, up 6,114 lots. The highest price was 22,515 yuan/ton, and the lowest was 22,090 yuan/ton [1] Inventory - As of June 3, 2025, the total inventory of SMM seven - region zinc ingots was 77,400 tons, down 1,400 tons from the previous week. The LME zinc inventory was 137,350 tons, down 800 tons from the previous trading day [2]

Report Industry Investment Rating - Unilateral: Neutral. Arbitrage: Inter - period positive spread [5] Core View - Zinc prices maintain a volatile pattern. The current strong consumption supports zinc prices to oscillate at a high level, but consumption may face a test in June, and attention should be paid to inventory changes [1][4] Summary by Relevant Catalogs Important Data - **Spot**: LME zinc spot premium is -$20.21/ton. SMM Shanghai zinc spot price rose by 100 yuan/ton to 22,830 yuan/ton, and its premium decreased by 30 yuan/ton to 415 yuan/ton. SMM Guangdong zinc spot price rose by 170 yuan/ton to 22,860 yuan/ton, and its premium increased by 40 yuan/ton to 445 yuan/ton. SMM Tianjin zinc spot price rose by 110 yuan/ton to 22,840 yuan/ton, and its premium decreased by 20 yuan/ton to 425 yuan/ton [2] - **Futures**: On May 28, 2025, the main SHFE zinc contract opened at 22,380 yuan/ton and closed at 22,210 yuan/ton, down 200 yuan/ton from the previous trading day. Trading volume was 162,225 lots, a decrease of 180,952 lots from the previous day, and positions were 123,007 lots, an increase of 1,439 lots. The intraday price fluctuated between 22,200 - 22,485 yuan/ton [2] - **Inventory**: As of May 26, 2025, the total inventory of SMM seven - region zinc ingots was 78,800 tons, a decrease of 5,000 tons from the previous week. As of May 28, 2025, LME zinc inventory was 143,450 tons, a decrease of 7,700 tons from the previous trading day [3] Market Analysis - In the spot market, traders continued to hold up prices, and the spot premium remained relatively stable, but downstream procurement sentiment was poor. A zinc smelter in South China extended its maintenance, causing zinc prices to fluctuate and rise, but the rise lacked sustained momentum. Overseas mine output in Q1 was lower than expected, but domestic smelters had sufficient raw material inventories. TC is expected to rise in June, and smelting still has profits, so the supply pressure remains. The current strong consumption supports high - level volatility of zinc prices, but consumption may weaken month - on - month after June [4]

Report Summary 1. Report Industry Investment Rating - Unilateral: Neutral [5] - Arbitrage: Inter - period positive spread [5] 2. Report's Core View - After maintenance disturbances, zinc prices rose and then fell. The current strong consumption supports zinc prices to fluctuate at a high level, but consumption may face challenges in June, and there is a possibility of a month - on - month decline in consumption after June. Attention should be paid to inventory changes [1][4] 3. Summary According to Related Catalogs Important Data - **Spot**: LME zinc spot premium is -$21.55/ton. SMM Shanghai zinc spot price rose by 160 yuan/ton to 22,730 yuan/ton, and its premium rose by 55 yuan/ton to 445 yuan/ton. SMM Guangdong zinc spot price rose by 140 yuan/ton to 22,690 yuan/ton, and its premium rose by 35 yuan/ton to 405 yuan/ton. SMM Tianjin zinc spot price rose by 160 yuan/ton to 22,730 yuan/ton, and its premium rose by 55 yuan/ton to 445 yuan/ton [2] - **Futures**: On May 27, 2025, the main SHFE zinc contract opened at 22,185 yuan/ton and closed at 22,330 yuan/ton, up 135 yuan/ton from the previous trading day. The trading volume was 343,177 lots, an increase of 200,438 lots from the previous trading day. The open interest was 121,568 lots, an increase of 3,048 lots from the previous trading day. The intraday price fluctuated, with a high of 22,695 yuan/ton and a low of 22,175 yuan/ton [2] - **Inventory**: As of May 26, 2025, the total inventory of SMM seven - region zinc ingots was 78,800 tons, a decrease of 5,000 tons from the same period last week. As of May 27, 2025, LME zinc inventory was 151,150 tons, a decrease of 2,350 tons from the previous trading day [3] Market Analysis - In the spot market, traders' supplies were tight, and concerns about the maintenance of smelters in South China pushed up the spot premium. However, downstream buyers were reluctant to buy at high prices, and the purchase enthusiasm was poor due to the supplement of imported supplies. A zinc smelter in South China extended its maintenance, causing zinc prices to fluctuate and rise, but the rise lacked sustainable momentum, and supply pressure pushed zinc prices back into the oscillation range [4] - Overseas mine production in Q1 was lower than expected, but TC will continue to rise in June. Even at the current TC price, smelting is still profitable, and smelting enthusiasm remains high, so supply pressure persists. Domestic smelters have sufficient raw material inventories, and there is no condition for a short - term TC reduction [4]