Report Summary 1. Investment Rating - No investment rating for the industry is provided in the report. 2. Core Viewpoints - For the lead market, supply and demand are both increasing, with no obvious contradictions. Tight raw materials and peak - season expectations support lead prices. Short - term lead prices are expected to trade in a range [1]. - For the zinc market, macro factors such as the "anti - involution" sentiment in China and the US non - farm payroll data have an impact. Fundamentally, there is an increase in both zinc ore and zinc ingot supply, while demand is in the off - season with continuous inventory accumulation. Short - term zinc prices are also expected to trade in a range [1]. 3. Summary by Related Catalogs Lead Market - **Price and Market Indicators**: The average price of SMM1 lead ingots decreased by 0.75% to 16,550 yuan/ton, and the closing price of the main Shanghai lead futures contract remained unchanged at 16,735 yuan/ton. The trading volume of the active futures contract decreased by 10.73% to 47,634 lots, while the open interest increased by 5.10% to 76,338 lots. The LME lead inventory remained unchanged at 275,325 tons, and the Shanghai lead warehouse receipt inventory decreased by 3.87% to 59,948 tons [1]. - **Industry News**: From July 25th to July 31st, the weekly operating rate of SMM primary lead enterprises was 63.9%, a 0.53 - percentage - point increase; the weekly operating rate of secondary lead enterprises was 44.4%, a 3.7 - percentage - point increase; and the weekly operating rate of lead - acid battery enterprises was 71.86%, remaining flat. The pb50TC processing fee of a silver - lead mine in North China was lowered to - 500 yuan/metal ton at the end of July [1]. - **Fundamentals**: There is no expected increase in lead concentrate imports, and processing fees are likely to rise. Primary lead production is relatively stable, while secondary lead production is at a relatively low level due to high waste lead - acid battery prices and limited raw material supply. As the inventory of electrolytic lead factories decreases, the market's acceptance of high - priced secondary lead has improved. The market still anticipates peak - season consumption, but most enterprises suspended purchases at the end of the month for inventory checks [1]. Zinc Market - **Price and Market Indicators**: The average price of SMM1 zinc ingots remained unchanged at 22,230 yuan/ton, and the closing price of the main Shanghai zinc futures contract decreased by 0.11% to 22,320 yuan/ton. The trading volume of the active futures contract decreased by 42.45% to 105,121 lots, and the open interest decreased by 2.17% to 108,084 lots. The LME zinc inventory remained unchanged at 100,825 tons, and the Shanghai zinc warehouse receipt inventory decreased by 0.50% to 14,982 tons [1]. - **Industry News**: From July 25th to July 31st, the weekly operating rate of galvanizing enterprises was 56.77%, a 2.65 - percentage - point decrease; the weekly operating rate of die - casting zinc alloy enterprises was 48.24%, a 2.79 - percentage - point decrease; and the weekly operating rate of zinc oxide enterprises was 56.13%, a 0.14 - percentage - point increase. On July 31st, Nexa announced the completion of key milestones in the first phase of its Cerro Pasco integration project. The company's zinc concentrate production in Q2 2025 was 74,000 metal tons, a 9% increase from the previous quarter but a 12% decrease year - on - year. The total sales volume of refined zinc and zinc oxide in the second quarter was 145,000 tons, a 12% increase from the previous quarter [1]. - **Fundamentals**: Zinc smelters have sufficient raw material inventories, and zinc ore processing fees are rising. It is expected that the zinc concentrate processing fee in August will continue to increase, weakening cost support. Smelter profits and production enthusiasm have improved, with a clear trend of increased production. Although downstream purchasing enthusiasm has improved due to the recent decline in zinc prices, terminal demand is in the off - season, and enterprise operating rates have declined [1].

1. Industry Investment Rating - No investment rating information is provided in the report. 2. Core Viewpoints - The lead market shows a pattern of increasing supply and demand with no obvious contradictions. Tight raw materials and peak - season expectations support lead prices, and short - term lead prices are expected to trade in a range [1]. - The zinc market has an increase in both ore and ingot supply, while demand is in the off - season with continuous inventory accumulation. The fundamentals are weak, and short - term zinc prices are expected to trade in a range considering the repeated "anti - involution" sentiment in the macro - environment [1]. 3. Summary by Relevant Catalogs 3.1 Price and Market Indicators - **Lead** - SMM1 lead ingot average price was 16,750 yuan/ton, down 0.15% from the previous day; Shanghai lead futures main contract closed at 16,890 yuan/ton, down 0.06% [1]. - Shanghai lead basis was - 140 yuan/ton, down 15 yuan; LME 0 - 3 lead premium was - 36.37 dollars/ton, down 4.57 dollars [1]. - Futures active contract volume was 37,318 lots, down 22.22%; open interest was 66,741 lots, up 3.42% [1]. - LME lead inventory was 276,375 tons, unchanged; Shanghai lead warehouse receipts inventory was 61,934 tons, up 1.64% [1]. - LME 3 - month lead futures (electronic) closed at 1,992 dollars/ton, down 1.39%; Shanghai - London lead price ratio was 8.48, up 1.35% [1]. - **Zinc** - SMM1 zinc ingot average price was 22,610 yuan/ton, up 0.49%; Shanghai zinc futures main contract closed at 22,670 yuan/ton, up 0.07% [1]. - Shanghai zinc basis was - 60 yuan/ton, up 95 yuan; LME 0 - 3 zinc premium was - 2.69 dollars/ton, up 1.23 dollars [1]. - Futures active contract volume was 141,408 lots, up 11.15%; open interest was 116,245 lots, down 1.17% [1]. - LME zinc inventory was 109,050 tons, unchanged; Shanghai zinc warehouse receipts inventory was 15,232 tons, down 0.49% [1]. - LME 3 - month zinc futures (electronic) closed at 2,795.5 dollars/ton, down 0.68%; Shanghai - London zinc price ratio was 8.11, up 0.75% [1]. 3.2 Industry News - **Lead** - Grupo Mexico's Q2 2025 zinc concentrate output was 45,900 tons, a year - on - year increase of 56% due to the operation of Buenavista zinc mine and higher ore grade [1]. - In Ningxia, the arrival of watermelon - harvesting season has increased the demand for logistics vehicles, making it difficult for lead smelters to find transport vehicles, and freight has risen by 20 - 50 yuan/ton [1]. - Northeast China's primary lead smelters plan to conduct equipment maintenance from August for 30 - 45 days, ending around mid - September, with an expected lead production impact of 5,000 - 8,000 tons [1]. - **Zinc** - Fresnilloplc's Q2 2025 zinc concentrate metal output was 28,400 tons, a quarter - on - quarter increase of 12.5%, mainly due to higher ore grade and throughput at Saucito and Juanicipio, partially offset by lower grade and recovery at Ciénega [1]. 3.3 Fundamental Analysis - **Lead** - There is no expected increase in lead concentrate imports, and processing fees are likely to rise. A primary lead smelter had a slight decline in production due to equipment failure last week [1]. - Scrap lead - acid battery prices are likely to rise, and recyclers' supplies are limited. Some secondary lead smelters have reduced or stopped production due to raw material shortages or cost - price inversion, but the acceptance of high - priced secondary lead has improved, and secondary lead production is gradually recovering [1]. - As the end of July approaches, the market still expects peak - season consumption, but most enterprises suspended purchases for inventory checks at the end of the month [1]. - **Zinc** - Smelters have sufficient raw material stocks, and zinc concentrate processing fees are rising. Domestic smelters are negotiating August processing fees, and fees are expected to continue rising, weakening cost support [1]. - Zinc prices strengthened during the week, and downstream off - season purchases decreased significantly [1].