Report Summary 1. Report Industry Investment Rating - Unilateral: Neutral [5] - Arbitrage: Neutral [5] 2. Core Viewpoints - The spot premium has weakened due to inventory accumulation and weak downstream purchasing enthusiasm, while the supply pressure is clear and the upside of zinc prices is difficult to break through. Although low inventory supports zinc prices, there is a risk of weakening consumption in June [1][4] 3. Summary by Relevant Catalogs Important Data - **Spot**: The LME zinc spot premium was -$29.28 per ton. SMM Shanghai zinc spot price dropped by 60 yuan/ton to 22,850 yuan/ton, with the premium falling by 55 yuan/ton to 455 yuan/ton. SMM Guangdong zinc spot price dropped by 40 yuan/ton to 22,770 yuan/ton, with the premium falling by 35 yuan/ton to 375 yuan/ton. SMM Tianjin zinc spot price dropped by 80 yuan/ton to 22,760 yuan/ton, with the premium falling by 75 yuan/ton to 365 yuan/ton [2] - **Futures**: On June 5, 2025, the SHFE zinc main contract opened at 22,380 yuan/ton and closed at 22,340 yuan/ton, down 40 yuan/ton from the previous trading day. The trading volume was 146,875 lots, a decrease of 22,590 lots, and the open interest was 124,586 lots, an increase of 642 lots. The intraday price fluctuated between 22,255 - 22,450 yuan/ton [2] - **Inventory**: As of June 5, 2025, the total SMM seven - region zinc ingot inventory was 79,300 tons, an increase of 4,300 tons from the previous week. The LME zinc inventory was 137,150 tons, an increase of 875 tons from the previous trading day [3] Market Analysis - **Spot Market**: The spot premium weakened due to inventory accumulation and weak downstream purchasing enthusiasm. The port inventory of ore and the raw material inventory of smelters are sufficient, TC is rising, and smelting profits are still high [4] - **Supply**: The supply growth expectation in June has returned to around 10%, and high - speed supply growth is expected to continue in the second half of the year, putting pressure on the upside of zinc prices [4] - **Consumption**: The impact of Sino - US tariffs on consumption has not yet appeared, and consumption is supported by pre - export rush and low inventory. However, there is a risk of weakening consumption in June [4]