Core Points - The agreement between the EU and the US has progressed through various stages, with the council and parliament approving it, and it now moving to a trilog phase for finalization [1][2] - The US has expressed frustration over the lengthy process, noting that it has been in compliance since the framework agreement was released in August of the previous year, while the EU has not yet complied [2][8] - The deal includes safeguards that allow for suspension if the US threatens the territorial sovereignty of EU territories, such as Greenland [3] Tariffs and Trade Issues - There are currently 50% tariffs on certain EU exports to the US, particularly steel and aluminum, which are also reciprocated by the EU [9][10] - Discussions are anticipated regarding these tariffs, although the US administration appears to be focused on other priorities at the moment [12][13] - A separate investigation into unfair trade practices by the EU is ongoing, but it is not expected to violate the terms of the current deal [14][15]

Report Information - Report Title: Zinc Futures Daily Report [1] - Date: March 13, 2026 [2] - Researcher: Zhang Ping, Peng Jinglin, Yu Feifei [3][4] Market Review - **Futures Market Quotes**: The closing prices of SHFE zinc contracts 2603, 2604, and 2605 were 24,230 yuan/ton, 24,300 yuan/ton, and 24,340 yuan/ton respectively, with declines of 0.39%, 0.49%, and 0.53% [7]. - **Market Analysis**: The US February CPI met expectations. In an extreme scenario of the Middle - East conflict, oil prices may continue to rise, delaying the first interest - rate cut to September. The US restarted the 301 investigation, potentially re - imposing tariff pressure. Most domestic metal markets closed lower today. SHFE zinc rebounded from a low in the afternoon, closing at 24,300 yuan/ton, down 120 yuan or 0.49%. LME inventories decreased by 150 tons to 98,750 tons on the 12th, with a cumulative delivery of 3,775 tons during the week. The 0 - 3C spread widened to 41.31. The average domestic TC of SMM Zn50 increased by 50 to 1,550 yuan/metal ton. The import zinc concentrate index decreased by 8.37 to 15.38 US dollars/ton. The inventory at major ports decreased by 31,000 physical tons. High revenues from by - products such as sulfuric acid continued to subsidize smelting profits. Refined zinc production in March will increase month - on - month. On the demand side, the start - up rate is gradually increasing but has not returned to the pre - holiday level. North China is still affected by environmental restrictions. Downstream consumption is mostly for rigid demand. The spot premium remained flat, and social inventories continued to increase to 268,800 tons, with no sign of a de - stocking inflection point. The short - term market is expected to fluctuate within a narrow range [7]. Industry News - **Price Ranges**: On March 12, 2026, the mainstream transaction prices of 0 zinc were between 24,120 - 24,370 yuan/ton, and 1 zinc between 24,050 - 24,300 yuan/ton. In the Ningbo market, the mainstream 0 zinc was traded at 24,140 - 24,360 yuan/ton. In the Tianjin market, 0 zinc was traded at 24,120 - 24,400 yuan/ton, and 1 zinc at 24,100 - 24,340 yuan/ton. In the Guangdong market, 0 zinc was traded at 24,100 - 24,400 yuan/ton [8]. - **Price Premiums**: In the Ningbo market, the regular brands were at a discount of 80 yuan/ton to the 2604 contract and at a premium of 40 yuan/ton to the Shanghai spot. In the Tianjin market, Zijin was at a discount of 30 - 50 yuan/ton to the 2604 contract. In the Guangdong market, the mainstream brands were at a discount of 120 - 60 yuan/ton to the 2604 contract and at a premium of 30 yuan/ton to the Shanghai spot, and the price difference between Shanghai and Guangdong widened [8]. Data Overview - **Data Sources**: The data in the report are from Wind and the Research and Development Department of CCB Futures, and SMM for zinc ingot inventory data [7][11][12] - **Data Charts**: The report includes charts such as the price trends of zinc in two markets, SHFE monthly spreads, SMM seven - region zinc ingot weekly inventories, and LME zinc inventories [10][12]

Core Viewpoint - The data indicates a decline in imports and an increase in exports prior to the Supreme Court's decision to overturn most of the president's tariffs [1] Group 1 - Imports experienced a dip in the month leading up to the Supreme Court ruling [1] - Exports saw a rise during the same period [1]

Inflation Data Overview - The U.S. CPI for February 2026 showed a year-on-year increase of 2.4%, matching expectations and the previous month's value[2] - Core CPI also remained stable at 2.5% year-on-year, consistent with forecasts and prior results[2] Key Contributors to Inflation - The decline in used car prices significantly contributed to the stabilization of overall inflation in February[2] - Food prices increased by 0.4% month-on-month, up from 0.2% in January, while energy prices rose by 0.6%, reversing a 1.5% decline in January[2][3] Core Goods and Services Analysis - Core goods prices increased by 0.1% month-on-month, with apparel prices rising sharply by 1.8% compared to 0.3% previously[2] - Core services growth slowed to 0.3% from 0.4%, primarily due to a decrease in entertainment prices influenced by cold weather[2] Market Reactions and Future Outlook - The market response to the February inflation data was muted, with U.S. stocks opening higher and bond yields increasing[2] - The report is viewed as outdated due to the ongoing Middle East conflict, which has not been reflected in the current oil price impacts[2] Risks and Projections - Continued tariffs are expected to exert upward pressure on core goods prices, with potential inflation exceeding expectations due to geopolitical tensions[2] - The Federal Reserve is unlikely to lower interest rates before June 2026, maintaining a cautious stance amid inflation concerns[2]

Economic Overview - Since the fourth quarter of last year, U.S. inflation has consistently underperformed market expectations, with CPI and core CPI remaining at low levels of 2.4% and 2.5% year-on-year as of February this year[7][10] - The core issue behind the weaker-than-expected inflation is insufficient demand support, particularly among middle and low-income groups whose financial situations have not improved significantly[10][11] Inflation Risks and Trends - The overall inflation risk in the U.S. is expected to remain controllable in 2026, with potential short-term disturbances from tariffs and geopolitical tensions, but lacking a solid foundation for sustained increases[11][30] - Inflation may see a mild rebound in the first half of the year but is expected to gradually ease in the second half, with the Federal Reserve likely to lower interest rates 1-2 times throughout the year[51][53] Tariff and Cost Impacts - The average effective tariff rate in the U.S. peaked at 16% but is expected to decrease to 13.7% as the government shifts to a more complex tariff framework[31][33] - Tariffs have already transmitted 40%-76% of their cost impacts to consumer prices, with the remaining untransmitted cost space becoming limited[36] Geopolitical and Oil Price Effects - Recent geopolitical tensions have led to a significant rebound in oil prices, which have risen from below $60 to over $90 per barrel, but the inflationary impact of oil prices is expected to remain manageable[38][42] - Even if oil prices average $80 per barrel this year, the impact on CPI is estimated to be only 0.3-0.4 percentage points[42] Fiscal Policy and Consumer Demand - Current fiscal policies are not expected to provide substantial support for middle and low-income groups, limiting overall demand and inflation recovery[47] - The political landscape complicates the implementation of large-scale fiscal support measures, making it difficult to improve consumer purchasing power significantly[47][49]

Core Viewpoint - The article discusses the impact of rising oil prices and tariffs on inflation, suggesting that the Federal Reserve may delay interest rate cuts until September due to these pressures [3]. Inflation Data Summary - The February CPI rose by 0.3% month-on-month, compared to a 0.2% increase in January, with a year-on-year increase of 2.4%, consistent with expectations [5]. - Energy prices increased by 0.6% month-on-month and 0.5% year-on-year, while food prices rose by 0.4% month-on-month and 3.1% year-on-year [5]. - Core CPI, excluding food and energy, rose by 0.2% month-on-month and 2.5% year-on-year, aligning with expectations [5]. - Housing prices, a major component of CPI, increased by 0.2% month-on-month and 3% year-on-year, with rent showing the smallest monthly increase since January 2021 at 0.1% [5]. Tariff and Cost Pressures - Despite most import tariffs being absorbed by companies, ongoing high input costs suggest that businesses may not continue to bear these expenses [6]. - The recent Supreme Court ruling has led to a 10% global tariff, which President Trump plans to increase to 15% [5]. Market Expectations for Federal Reserve Actions - Following the inflation data release, expectations for a rate cut by the Federal Reserve have cooled, with a 99% probability of maintaining rates in the upcoming March meeting [7]. - The probability of a rate cut in April dropped to 11% from 21% a month prior, with traders now anticipating a potential cut in September [7]. Future Inflation Outlook - Analysts predict that the recent surge in oil prices could lead to increased inflationary pressures in the coming months, particularly as gasoline prices have risen over 18% since late February [8]. - The ongoing conflict in Iran is expected to exacerbate inflation, with potential increases in transportation and consumer goods costs due to higher energy prices [8]. - The impact of rising oil prices could elevate overall inflation by 0.15 to 0.30 percentage points, depending on the conflict's evolution [9].

Group 1 - The U.S. budget deficit surpassed $1 trillion for the fiscal year through February, but it is sharply lower than the same period a year earlier [1] - For the fiscal year to date, the deficit totaled $1.004 trillion, about 12% lower than the comparable period in 2025, driven by faster growth in government revenues compared to spending [2] - A significant increase in tariff collections contributed to narrowing the deficit, with customs duties totaling $151 billion through the first five months of the fiscal year, up about $113 billion, or 294%, from a year earlier [2] Group 2 - The recent Supreme Court decision striking down many of President Trump's tariffs has not yet impacted the data, with economists noting potential delays in processing duties and a possible surge in imports [3] - Corporate tax revenue declined sharply, falling $27 billion, or 17%, from a year earlier, with tariff revenues exceeding corporate tax receipts for the fiscal year to date, indicating an unusual shift [4] - Net interest payments on the national debt, which stands at nearly $39 trillion, totaled $79 billion in February, ranking second only to Social Security and income security programs [5]

Financial Data and Key Metrics Changes - Acacia reported total revenue of $285.2 million for 2025, a 133% increase year-over-year from $122.3 million in 2024 [35] - Total Adjusted EBITDA for 2025 was $77.9 million, with operating cash flow of $75.2 million, both higher year-over-year [10][24] - The company recorded a GAAP net income of $21.7 million or $0.22 per diluted share in 2025, compared to a net loss of $36.1 million or negative $0.36 per diluted share in the prior year [38] Business Line Data and Key Metrics Changes - Energy operations generated $63.8 million in revenue for 2025, up from $49.2 million last year, reflecting a full year of results from the acquisition of Revolution assets [35] - Manufacturing operations generated $114.8 million in revenue for the year, while industrial operations generated $28.3 million, down from $30.4 million last year [35] - Intellectual property operations generated $78.4 million in licensing and other revenue for the year, compared to $19.5 million last year [35] Market Data and Key Metrics Changes - The Class 8 trucking market showed signs of recovery, with orders improving year-over-year by 23%, 25%, and 156% in the last three months of the year [14] - The Canadian housing market faced building cost pressures and a slowdown in sales velocity, impacting the air distribution segment [15] Company Strategy and Development Direction - The company aims to build a portfolio of operating companies that create long-term compounding value while preserving capital [6] - Acacia is focused on managing expenses and capital allocation prudently while exploring acquisition opportunities in the current market environment [25][66] - The strategy includes leveraging strong cash generation to pay down debt and enhance operational efficiencies across its segments [11][19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating macroeconomic challenges and highlighted the importance of operational improvements and strategic acquisitions [10][25] - The company remains optimistic about the potential for growth in 2026, driven by a robust pipeline of opportunities and ongoing improvements in operational performance [43] Other Important Information - The company maintained a strong balance sheet with cash and cash equivalents totaling $339.6 million at the end of 2025, up from $297 million at the end of 2024 [39] - Acacia's total indebtedness was $92.1 million as of December 31, 2025, with no parent company debt [41] Q&A Session Summary Question: Expectations for the new well in Cherokee - Management indicated that the new well is expected to produce better results than existing wells, with several attractive locations identified for future drilling [48][49] Question: Thoughts on selling Cherokee assets - Management acknowledged that selling the Cherokee assets is an option, but they will evaluate the production potential before making any decisions [50] Question: Average hedge price per barrel - The average hedge price is currently about $70 per barrel, with plans to continue hedging new production from the recently drilled well [51] Question: Operating margins and EBITDA aspirations for Deflecto - Management is optimistic about operational improvements and anticipates benefits from cost-saving initiatives and market recovery [60][61] Question: Rationale behind selling the floor mat business - The floor mat business was deemed subscale, and the sale was considered a strategic capital allocation decision [63] Question: Impact of AI on the legacy patent portfolio - Management believes that AI could serve as a tailwind for the value of the legacy patent portfolio, particularly in connectivity [64] Question: Current state of private equity and credit markets - Management noted that while there are opportunities in the private equity market, it is not yet a buyer's market for good assets [80] Question: Capital allocation and potential buyback - Management is continuously evaluating capital allocation options, including the potential for share buybacks when appropriate [92][94]

Inflation Overview - US inflation remained flat at 2.4% in February, following fluctuations in the previous year, with a four-year low of 2.4% in January [1][2] - Core inflation, excluding food and energy, was reported at 2.5%, with significant price increases in shelter, medical care services, and utilities [2] Impact of Tariffs - Certain sectors heavily reliant on imports showed notable price increases due to tariffs, with coffee prices rising by 18.4% year-over-year and canned fruit and vegetable prices increasing by 6.2% [2] - The US Supreme Court recently struck down much of Trump's tariff regime, leading to the introduction of a new 15% tariff on all imports [4] Oil Prices and Economic Uncertainty - The US conflict in Iran has led to global oil price shocks, with gas prices rising from just below $3 to $3.50 within a short period [5] - Economists estimate that a $10 increase in oil prices could result in a 0.2% increase in overall price levels [5] Federal Reserve's Response - The new inflation data is expected to influence the upcoming US Federal Reserve board meeting, where interest rates are likely to remain unchanged despite ongoing conflicts [6] - The Federal Reserve has resisted lowering interest rates due to persistent inflation above the target rate of 2%, despite pressure from President Trump [7] Labor Market Conditions - The US economy experienced a loss of 92,000 jobs in February, resulting in an increase in the unemployment rate to 4.4% [8]

Core Viewpoint - Nintendo of America is pursuing a refund from the Trump administration following a Supreme Court ruling that the president did not have the authority to impose tariffs under a 1977 emergency powers law [1]. Group 1: Lawsuit Details - The lawsuit was filed in the U.S. Court of International Trade and seeks an unspecified refund amount along with interest [1]. - The lawsuit claims that the plaintiff has been significantly harmed by the unlawful execution and imposition of unauthorized Executive Orders and the corresponding payment of IEEPA Duties [2]. Group 2: Tariff Context - The lawsuit references tariffs imposed by Trump on various countries, including Canada, Mexico, and China [2]. - Trump has attempted to maintain tariffs through alternative means, with the latest across-the-board 15% tariff set to last for 150 days unless Congress votes for an extension [3].