Group 1: Zinc Supply Dynamics - Zinc ore supply is tightening marginally, with domestic zinc concentrate production in October at 330,800 tons, a year-on-year increase of 12.3% [2] - The International Lead and Zinc Study Group (ILZSG) reported that global zinc ore production in August was 1,097,600 tons, a month-on-month increase of 2.2% and a year-on-year increase of 13.1% [2] - Domestic zinc smelting plants are actively purchasing local ore due to a significant drop in processing fees, which fell to 2,600 yuan per metal ton, down 1,300 yuan from August's peak [2] Group 2: Refined Zinc Production - Global refined zinc production in August was 1,227,000 tons, with a monthly surplus of 47,900 tons [3] - Domestic refined zinc production in October was 617,200 tons, a year-on-year increase of approximately 21% [3] - The tightening zinc ore supply may lead to a slight reduction in refined zinc production as smelting plants face profit pressures [3] Group 3: Demand Trends - Overall demand from downstream processing enterprises remains stable, with some replenishment observed in mid-October when zinc prices fell [4] - However, the rising zinc prices in November may suppress downstream demand, particularly in the galvanized pipe sector due to weak steel prices and pressures in real estate and infrastructure [4] - Orders in sectors like power transmission and photovoltaic supports have shown resilience, while environmental factors may impact operational rates as winter approaches [4] Group 4: Market Outlook - The macroeconomic environment requires attention to the Federal Reserve's interest rate expectations and precious metal trends affecting zinc prices [4] - Despite a lack of significant tightness in the market, the marginal changes in supply dynamics are expected to provide support for zinc prices [4] - Domestic inventories are slowly declining, and the current market sentiment may weaken, leading to potential volatility in zinc prices [4]