Report Industry Investment Rating - Unilateral: Cautiously bullish. Arbitrage: Neutral [5] Core Viewpoints - The spot market needs time to recover, and the downstream is still on holiday, so the spot premium is difficult to perform. Overseas uncertainties still exist, and attention should be paid to the risk of mineral resource protection spillover. The inventory accumulation during the Spring Festival is similar to that of previous years, and attention should be paid to the subsequent destocking rhythm. The TC at the mine end is still low, which supports the price. The sulfuric acid price continues to strengthen, and the comprehensive smelting loss narrows. Optimistic expectations are maintained for long - term macro and actual consumption, and opportunities for buying and hedging at low prices should be sought [4] Summary by Related Catalogs Spot Market - LME zinc spot premium is -$31.93 per ton. SMM Shanghai zinc spot price is 24,530 yuan per ton, a change of - 120 yuan per ton from the previous trading day, with a spot premium of - 45 yuan per ton. SMM Guangdong zinc spot price is 24,490 yuan per ton, a change of - 120 yuan per ton from the previous trading day, with a spot premium of - 115 yuan per ton. Tianjin zinc spot price is 24,500 yuan per ton, a change of - 110 yuan per ton from the previous trading day, with a spot premium of - 75 yuan per ton [1] Futures Market - On February 25, 2026, the main contract of SHFE zinc opened at 24,515 yuan per ton, closed at 24,645 yuan per ton, a decrease of 10 yuan per ton from the previous trading day. The trading volume was 52,469 lots, and the open interest was 26,600 lots. The highest price during the day was 24,705 yuan per ton, and the lowest was 24,455 yuan per ton [2] Inventory - As of February 25, 2026, the total inventory of zinc ingots in seven places monitored by SMM was 209,700 tons, a change of 49,400 tons from the previous period. As of the same date, LME zinc inventory was 99,825 tons, a change of - 1,425 tons from the previous trading day [3]

Core Viewpoint - The article highlights the ongoing efforts by various government departments in China to address issues related to abandoned mines and illegal mining activities, emphasizing the importance of responsibility and accountability in resource protection and safety production [1] Group 1: Inspection and Enforcement Actions - Six special working groups led by multiple government departments have been deployed to 12 key regions across the country to conduct inspections and enforcement against abandoned mines and illegal mining activities [1] - As of now, a total of 96,666 abandoned mines have been identified nationwide, with an overall sealing completion rate of 92.72% [1] - Since the initiation of the rectification work, 568 cases of illegal mining have been investigated, resulting in 338 administrative penalties and 102 cases referred to judicial authorities, with 403 individuals facing criminal penalties [1] Group 2: Accountability and Future Actions - The inspections focus on ensuring comprehensive checks, effective sealing, strong enforcement, and sound mechanisms to hold local authorities accountable [1] - A total of 31 local government officials and regulatory personnel have been interviewed for inadequate performance, with 29 receiving disciplinary actions [1] - The State Council's Work Safety Committee will continue to organize inspections to further enforce accountability and strengthen the protection of mineral resources and safety production [1]

Group 1 - The article discusses the efforts by various government departments in China to conduct inspections and enforcement actions against abandoned mines and illegal mining activities, with a focus on ensuring comprehensive checks and effective closures [1] - A total of 96,666 abandoned mines have been identified nationwide, with an overall closure completion rate of 92.72% [1] - Since the initiation of the rectification work, there have been 568 cases of illegal mining activities investigated, resulting in 338 administrative penalties and 403 criminal punishments [1] Group 2 - The next steps involve continued inspections and enforcement actions to further strengthen the responsibilities of local governments in protecting mineral resources and ensuring safety in production [1]

Group 1 - The State Council's Work Safety Committee has dispatched working groups to conduct inspections on illegal mining activities across 12 key regions in China [1] - The inspections focus on the thoroughness of investigations, effectiveness of closures, strength of enforcement, and soundness of mechanisms to combat illegal mining [1] - A total of 96,666 abandoned mines have been identified nationwide, with an overall closure completion rate of 92.72% [1] Group 2 - Since the initiation of the crackdown, authorities have investigated 568 cases of illegal mining, resulting in 338 administrative penalties and 102 cases referred to judicial authorities [1] - Criminal penalties have been imposed on 403 individuals, and 31 local government officials have been interviewed for inadequate performance [1] - The State Council's Work Safety Committee will continue to organize inspections to reinforce responsibilities and enhance the protection of mineral resources and safety production [1]

Core Viewpoint - The article highlights the ongoing efforts by various government departments in China to address issues related to abandoned mines and illegal mining activities, emphasizing the importance of responsibility and accountability in resource protection and safety production [1]. Group 1: Inspection and Enforcement Actions - Six special working groups led by multiple government departments have been deployed to 12 key regions across the country to conduct inspections and enforcement actions against abandoned mines and illegal mining activities [1]. - As of now, a total of 96,666 abandoned mines have been identified nationwide, with an overall sealing completion rate of 92.72% [1]. - Since the initiation of the rectification work, there have been 568 cases of illegal mining activities investigated, resulting in 338 administrative penalties and 102 cases referred to judicial authorities, with 403 individuals facing criminal penalties [1]. Group 2: Accountability and Future Actions - The government has conducted 31 discussions with local government officials and regulatory personnel for inadequate performance, leading to 29 disciplinary actions [1]. - The State Council's Work Safety Committee Office will continue to organize inspections to further enforce accountability and strengthen the protection of mineral resources and safety production [1].

Group 1 - The core viewpoint of the news is the joint action taken by the Jiangxi Province Guangchang County Natural Resources Bureau and the County Public Security Bureau to combat illegal mining activities and related criminal behaviors in the mineral resources sector [1][2] - A special action plan has been developed to implement a comprehensive monitoring system using satellite remote sensing and intelligent video monitoring platforms to oversee mining activities [1] - The special working group emphasizes thorough inspections of licensed mines, abandoned mining areas, historical illegal mining sites, and various construction projects to ensure no illegal activities are overlooked [1] Group 2 - The Guangchang Bureau is utilizing various outreach methods, including the internet and promotional materials, to encourage public reporting of illegal mining activities [2] - As of now, no instances of unlicensed mining or licensed mines exceeding their permitted boundaries have been reported in the county [2] - The bureau plans to expand its inspection coverage and establish a connection with the prosecution authorities to ensure that any illegal mining activities that meet criminal criteria are promptly addressed [2]

Core Insights - China has initiated a special operation named "Shield" to combat the illegal outflow of strategic minerals, marking a significant enforcement action against smuggling activities [1] - The new Mineral Resources Law, effective from July 1, 2025, represents a comprehensive revision aimed at addressing key issues in mineral exploration and extraction, enhancing the legal framework for resource management [3][5] Group 1: Enforcement Actions - The operation "Shield" involved customs authorities intercepting a cargo ship carrying antimony ingots disguised as industrial raw materials, highlighting China's commitment to curbing illegal mineral exports [1] - Trade data revealed that Thailand and Mexico exported 3,834 tons of antimony oxide to the U.S. within a few months, surpassing the total from the previous three years, indicating a surge in smuggling activities [1] Group 2: Legislative Changes - The revised Mineral Resources Law introduces a direct acquisition system for mining rights, resolving the challenges faced by explorers in transitioning to mining operations [3] - The law mandates that all mining operations must adhere to an ecological restoration principle, linking mining permits to the responsibility of land rehabilitation [5] Group 3: Strategic Implications - The U.S. has been actively seeking to reduce its dependence on Chinese rare earths through initiatives like the "Critical Minerals Initiative," which aims to create alternative supply chains [3] - The legal reforms in China signal a shift in the perception of strategic minerals from ordinary commodities to critical assets in national security and international competition [7]