Group 1: Report Industry Investment Rating - Unilateral: Cautiously bullish. Arbitrage: Neutral [6] Group 2: Core View of the Report - Zinc prices have declined, and there is restocking behavior in the spot market. However, social inventories are increasing and are about to exceed the levels of the past five years. Spot liquidity has improved, but procurement remains cautious. The TC of domestic and imported ores continues to rise, smelting profits are increasing, and the smelting enthusiasm remains high. The supply is expected to increase. Even during the peak consumption season, domestic inventory accumulation is still expected, and the current inventory accumulation is accelerating. If the peak consumption season expectations are not met, zinc prices will face significant pressure. Zinc prices are expected to be relatively weak even when other non - ferrous metals are strong, but the impact of overseas inventories needs to be watched [5] Group 3: Summary by Relevant Catalogs Important Data - **Spot**: The LME zinc spot premium is -$29.14 per ton. The SMM Shanghai zinc spot price is 23,260 yuan per ton, up 170 yuan from the previous trading day, with a premium of 90 yuan per ton. The SMM Guangdong zinc spot price is 23,220 yuan per ton, up 200 yuan, with a premium of - 5 yuan per ton. The Tianjin zinc spot price is 23,170 yuan per ton, up 180 yuan, with a premium of 0 yuan per ton [2] - **Futures**: On December 24, 2025, the main SHFE zinc contract opened at 23,290 yuan per ton and closed at 23,230 yuan per ton, down 215 yuan from the previous trading day. The trading volume was 171,518 lots, and the open interest was 95,197 lots. The highest price was 23,320 yuan per ton, and the lowest was 23,045 yuan per ton [3] - **Inventory**: As of December 24, 2025, the total inventory of zinc ingots in seven regions monitored by SMM was 124,500 tons, up 2,300 tons from the previous period. The LME zinc inventory was 106,875 tons, up 7,900 tons from the previous trading day [4] Market Analysis - Zinc prices have fallen, and there is restocking in the spot market. Social inventories are rising, and spot liquidity has improved. Procurement is still cautious. The TC of domestic and imported ores is rising, smelting profits are increasing, and smelting enthusiasm remains high. The supply is expected to increase. The pressure on the supply side is increasing, and domestic inventory accumulation is expected even during the peak consumption season. If the peak - season expectations are not met, zinc prices will face pressure. Zinc prices may be relatively weak, but the impact of overseas inventories needs attention [5] Strategy - Unilateral: Cautiously bullish. Arbitrage: Neutral [6]

Report Summary 1. Investment Rating - Unilateral: Cautiously bullish [5] - Arbitrage: Neutral [5] 2. Core View - The smelters' strong demand for zinc ore may lead to a further decline in TC. Although the import loss of imported ore is still significant, the imported ore TC has started to fall. The domestic supply pressure remains, but if the TC continues to decline, the supply - side pressure is expected to ease. The export window is fully open, but the uncertainty of LME far - month contract delivery restrains export enthusiasm, and the overseas inventory is difficult to show a trend increase. Micro - data is turning from bearish to bullish, and the macro environment remains positive, but the sustainability of zinc consumption needs to be tested [4]. 3. Summary by Category Important Data - **Spot**: LME zinc spot premium is $132.96/ton. SMM Shanghai zinc spot price is 22,250 yuan/ton, down 40 yuan/ton from the previous trading day, with a spot premium of - 40 yuan/ton. SMM Guangdong zinc spot price is 22,260 yuan/ton, down 30 yuan/ton, with a spot premium of - 90 yuan/ton. Tianjin zinc spot price is 22,230 yuan/ton, down 40 yuan/ton, with a spot premium of - 60 yuan/ton [1]. - **Futures**: On October 30, 2025, the main SHFE zinc contract opened at 22,490 yuan/ton, closed at 22,365 yuan/ton, down 30 yuan/ton. The trading volume was 111,090 lots, and the open interest was 119,758 lots. The highest price was 22,540 yuan/ton, and the lowest was 22,325 yuan/ton [2]. - **Inventory**: As of October 30, 2025, the total inventory of SMM seven - region zinc ingots was 161,500 tons, down 2,000 tons from the previous period. The LME zinc inventory was 34,900 tons, down 300 tons from the previous trading day [3].

Report Summary 1. Investment Rating - Not provided 2. Core View - The market is currently facing supply pressure, with a year-on-year increase of 7.2% in supply in June and an expected high output of 590,000 tons in July. Social inventories are increasing slightly, and there may be a negative feedback from invisible inventories. After the absolute price increase, the spot market trading has become more sluggish, and the spot premium has quickly declined. After the reaction of macro - positive factors, the deviation from the fundamentals may pull the zinc price back. Attention should be paid to changes in social inventories [4]. 3. Summary by Relevant Catalogs Important Data - **Spot**: LME zinc spot premium is -$21.99/ton. SMM Shanghai zinc spot price rose by 140 yuan/ton to 22,430 yuan/ton, and its premium rose by 5 yuan/ton to 110 yuan/ton. SMM Guangdong zinc spot price rose by 120 yuan/ton to 22,370 yuan/ton, and its premium fell by 15 yuan/ton to 50 yuan/ton. SMM Tianjin zinc spot price rose by 110 yuan/ton to 22,330 yuan/ton, and its premium fell by 25 yuan/ton to 10 yuan/ton [2]. - **Futures**: On July 3, 2025, the SHFE zinc main contract opened at 22,320 yuan/ton and closed at 22,325 yuan/ton, up 110 yuan/ton from the previous trading day. The trading volume was 132,674 lots, an increase of 4,654 lots, and the position was 127,934 lots, a decrease of 1,829 lots. The highest price was 22,400 yuan/ton, and the lowest was 22,245 yuan/ton [2]. - **Inventory**: As of July 3, 2025, the total inventory of SMM seven - region zinc ingots was 82,400 tons, an increase of 2,900 tons from last week. The LME zinc inventory was 112,675 tons, a decrease of 750 tons from the previous trading day [3]. Market Analysis - **Spot Market**: The strong performance of the futures market has dampened the downstream purchasing enthusiasm, and the spot premium has mainly declined. The supply pressure remains high, and the negative feedback from invisible inventories may occur. The increase in smelting profit has further stimulated the smelting enthusiasm, and the supply pressure persists. After the absolute price increase, the spot market trading has become more sluggish, and the spot premium has quickly declined [4]. Strategy - **Unilateral**: Cautiously bearish [5]. - **Arbitrage**: Neutral [5].