1. Report Industry Investment Rating - There is no information about the industry investment rating in the report. 2. Core Views of the Report - For the lead market, the supply and demand are both weak with no obvious contradictions. Tight raw materials and peak - season expectations support the lead price. With Powell's dovish remarks, the market's expectation of a Fed rate cut in September increases, reducing the upward pressure on non - ferrous metals. Coupled with positive domestic sentiment, the lead price maintains range - bound consolidation [1]. - For the zinc market, the fundamentals show an increase in both zinc ore and zinc ingot supply, while demand is in the off - season and inventory continues to accumulate, indicating weak fundamentals. However, the LME zinc inventory overseas has dropped to an absolute low, the LME 0 - 3 has turned to a back structure, and the capital concentration remains high. The upward trend of LME zinc provides some support to SHFE zinc. It is expected that SHFE zinc will be range - bound in the short term under the influence of the external market [1]. 3. Summary by Relevant Catalogs 3.1 Lead Market 3.1.1 Price and Market Data - The average price of SMM1 lead ingot was 16,725 yuan/ton, down 0.15% from the previous day; the closing price of the SHFE lead futures main contract was 16,860 yuan/ton, down 0.03% [1]. - The SHFE lead basis was - 135 yuan/ton, down 20 yuan; the premium in Shanghai was - 35 yuan/ton, up 15 yuan; the LME 0 - 3 premium was - 44.77 dollars/ton, down 1.68 dollars; the LME 3 - 15 premium was - 69.80 dollars/ton, down 2.90 dollars [1]. - The trading volume of the active lead futures contract was 25,910 lots, down 14.61%; the open interest was 50,042 lots, down 1.18%; the trading - to - open - interest ratio was 0.52, down 13.59% [1]. - The LME lead inventory was 251,200 tons, unchanged; the SHFE lead warehouse receipt inventory was 55,044 tons, down 1.49% [1]. - The closing price of the LME 3 - month lead futures (electronic trading) was 1,985.50 dollars/ton, down 0.50%; the SHFE - LME lead price ratio was 8.49, up 0.47% [1]. 3.1.2 Supply and Demand - On the supply side, there is no expected increase in lead concentrate imports, and the processing fee is likely to rise. Some primary lead smelters have maintenance plans, and the operating rate has slightly declined. For recycled lead, the price of waste lead - acid batteries is likely to rise, the recyclers' supply is limited, and some smelters have reduced or stopped production due to raw material shortages or cost - price inversions [1]. - On the demand side, the terminal market has not improved significantly, the peak - season effect has not been reflected, dealers are mainly digesting inventory, and production enterprises produce according to sales [1]. 3.1.3 News and Events - From late August to early September, vehicle transportation in Hebei, Henan and other regions was restricted due to the Tianjin SCO Summit and Beijing military parade. After the parade ended on September 4, transportation returned to normal [1]. - As of September 4, the total inventory of SMM lead ingots in five locations was 66,100 tons, a decrease of 1,000 tons compared to August 28 and September 1 [1]. 3.2 Zinc Market 3.2.1 Price and Market Data - The average price of SMM1 zinc ingot was 21,900 yuan/ton, down 1.22% from the previous day; the closing price of the SHFE zinc futures main contract was 22,120 yuan/ton, down 0.74% [1]. - The SHFE zinc basis was - 220 yuan/ton, down 105 yuan; the premium in Shanghai was - 65 yuan/ton, up 5 yuan; the premium in Tianjin was - 75 yuan/ton, up 5 yuan; the premium in Guangdong was - 65 yuan/ton, up 15 yuan; the LME 0 - 3 premium was 16.21 dollars/ton, down 2.57 dollars; the LME 3 - 15 premium was 21.72 dollars/ton, down 2.52 dollars [1]. - The trading volume of the active zinc futures contract was 171,243 lots, up 45.17%; the open interest was 118,873 lots, up 13.50%; the trading - to - open - interest ratio was 1.44, up 27.90% [1]. - The LME zinc inventory was 54,750 tons, unchanged; the SHFE zinc warehouse receipt inventory was 40,896 tons, down 0.12% [1]. - The closing price of the LME 3 - month zinc futures (electronic trading) was 2,838 dollars/ton, down 1.10%; the SHFE - LME zinc price ratio was 7.79, up 0.36% [1]. 3.2.2 Supply and Demand - On the supply side, smelters have sufficient raw material stocks, and the zinc ore processing fee has continued to rise. The domestic zinc concentrate processing fee remained flat at 3,900 yuan/metal ton last week, and the imported zinc ore processing fee index rose to 93.75 dollars/dry ton. Affected by the low internal - external price ratio, domestic ore has an advantage, and smelters mainly purchase domestic ore. The domestic TC in September may have limited upside. Smelter profits and production enthusiasm have improved, and the output shows an obvious increasing trend [1]. - On the demand side, the off - season effect is evident, and affected by environmental protection restrictions in the north, the operating rate of some downstream enterprises has weakened, and the enthusiasm for purchasing zinc ingots is limited. Downstream enterprises mainly fix prices at low points [1]. 3.2.3 News and Events - The Henan Provincial Department of Ecology and Environment released the fifth batch of typical cases of ecological environment law enforcement (involving illegal and criminal activities related to hazardous waste) in 2025 [1]. - On September 3, the [LME0 - 3 zinc] premium was 18.78 dollars/ton, and the open interest was 195,978 lots, a decrease of 866 lots [1].