Report Summary 1. Industry Investment Rating No industry investment rating is provided in the report. 2. Core Viewpoints - For lead, the price oscillated and declined. Considering the tight raw material supply and reduced supply, the downside space for lead prices is limited. It is recommended to wait and see for now [1]. - For zinc, the mine supply is continuously tightening, and the TC is likely to fall. It may have an impact on the supply side, providing some support for zinc prices. It is advisable to conduct range - bound operations, and also wait and see for now [1]. 3. Summary by Related Content Lead - **Price and Market Data**: On December 3, 2025, the average price of SMM1 lead ingots was 17,050 yuan/ton, up 0.44%; the closing price of the main futures contract of Shanghai lead was 17,210 yuan/ton, up 0.79%. The trading volume of the active futures contract was 52,077 lots, up 34.28%; the open interest was 47,601 lots, up 0.88%. The LME inventory remained unchanged at 256,950 tons, and the Shanghai lead warehouse receipt inventory decreased by 9.43% to 18,131 tons [1]. - **Fundamentals**: There is no expected increase in lead concentrate imports, and the processing fee is likely to rise. However, it has not yet had a substantial impact on smelter operations. Last week, more smelters were under maintenance, and the production of primary lead decreased. In the secondary lead sector, a smelter in Yunnan reduced production due to maintenance. The lead price fell below 17,000 yuan, and smelters were reluctant to sell at low prices. The inventory of primary lead increased, while that of secondary lead decreased. The consumption of electric bicycle batteries is gradually weakening, while the automotive battery market is approaching the traditional replacement peak season [1]. Zinc - **Price and Market Data**: On December 3, 2025, the average price of SMM1 zinc ingots was 22,670 yuan/ton, up 0.80%; the closing price of the main futures contract of Shanghai zinc was 22,745 yuan/ton, up 0.69%. The trading volume of the active futures contract was 122,766 lots, down 4.31%; the open interest was 106,325 lots, up 0.54%. The LME inventory remained unchanged at 52,375 tons, and the Shanghai zinc warehouse receipt inventory decreased by 3.00% to 63,804 tons [1]. - **Fundamentals**: Economically, smelters are actively purchasing domestic zinc ores, and the domestic ore supply is tight. The processing fees in many regions have been continuously reduced. The supply of zinc ingots is expected to remain at around 600,000 tons per month, and the production has not been affected. The demand is still weak, and the construction in the north has stopped due to cold weather, and some downstream operations have been affected by environmental protection [1]. Industry News - Saudi Arabia has launched a tender for three mineral exploration licenses, covering an area of 13,000 square kilometers. The country is accelerating the exploitation of deposits estimated at 9.4 trillion riyals (2.50 trillion US dollars), including areas with potential for gold, silver, copper, zinc, and lead mining [1]. - A zinc mine in South China resumed production after maintenance in November, with an expected increase of about 2,000 metal tons of zinc concentrate. A zinc mine in North China will undergo a 10 - day maintenance in December, with an expected reduction of about 500 metal tons of zinc concentrate. A zinc mine in Central China has gradually resumed production after maintenance, with an expected increase of about 1,000 metal tons of zinc concentrate [1].

Report Industry Investment Rating - No specific industry investment rating is provided in the report. Core Viewpoints - For lead, although downstream is in the off - season with high inventory accumulation risk, due to the continuous shortage of waste batteries, increased losses of secondary lead smelters, and high uncertainty in production, lead prices may rebound in the short term. Attention should be paid to the effectiveness of cost support and macro - uncertainty factors [1]. - For zinc, despite the recent improvement in macro - sentiment and better spot trading after the price decline, considering the supply - side suppression and inventory build - up expectations, the rebound space of zinc prices is limited, and a short - position allocation strategy is still recommended [1]. Summary According to Relevant Catalogs Lead Price and Market Data - SMM1 lead ingot average price was 16,625 yuan/ton, unchanged from the previous day; the futures main contract closed at 16,845 yuan/ton, down 0.21% from the previous day; the basis was - 220 yuan/ton, up 35 yuan; the trading volume of the active futures contract was 21,724 lots, down 40.01%; the open interest was 43,989 lots, up 0.05% [1]. - LME3 - month lead futures closed at 1,993.5 dollars/ton, up 0.30%; the ratio of Shanghai - London lead prices was 8.45, down 0.51% [1]. News and Production - An east - China secondary lead smelter plans to resume production at the end of June, and raw material procurement may resume one week before the furnace starts [1]. - A south - west primary lead smelter plans a one - week maintenance starting in late June, with an expected daily lead ingot output reduction of about 300 tons, but the monthly output is expected to be unaffected [1]. Fundamental Analysis - Primary lead production is stable with a slight increase; secondary lead production is at a relatively low level due to rising waste battery prices, limited raw materials, and high costs; demand is weak in the off - season, providing limited support for lead prices [1]. Zinc Price and Market Data - SMM1 zinc ingot average price was 22,230 yuan/ton, up 0.63%; the futures main contract closed at 22,140 yuan/ton, up 1.35%; the basis was 90 yuan/ton, down 155 yuan; the trading volume of the active futures contract was 170,227 lots, up 7.31%; the open interest was 125,779 lots, down 6.88% [1]. - LME3 - month zinc futures closed at 2,651 dollars/ton, down 0.28%; the ratio of Shanghai - London zinc prices was 8.35, up 1.64% [1]. News and Resource - Xingye Yinxi Mining Co., Ltd.'s subsidiary's silver mine resource reserve verification report was approved, with silver reserves increasing from 859.8 tons to 11,114 tons, and associated metals' resources also increasing [1]. Fundamental Analysis - Zinc smelters have sufficient raw material stocks, and the raw material shortage situation has improved, with cost support weakening and production increasing; demand is in the off - season, and considering environmental inspections, the start - up rate is expected to decline this week [1].