Core Insights - In October, the profits of industrial enterprises above designated size turned negative year-on-year, primarily due to the divergence in volume and price, uneven transmission of upstream price increases, and rising financial costs leading to a contraction in profit margins [1] - The industry is experiencing increased differentiation, with most sectors seeing a decline in profit growth; upstream industries performed slightly better than midstream and downstream, while only the beverage and tea sector benefited from a low base effect, resulting in marginal profit improvement [1] - Passive inventory replenishment highlights weak demand; future policy support and demand recovery are needed to stimulate inventory replenishment, alongside deepening anti-involution which may aid in improving PPI and restoring profit margins, although profit recovery may be gradual [1] - Caution is advised regarding demand falling short of expectations and issues related to cost transmission [1] Industry Analysis - The overall profit growth rate has declined across most industries, indicating a challenging environment for industrial enterprises [1] - Upstream industries are showing slightly better performance compared to midstream and downstream sectors, suggesting a potential shift in focus for investors [1] - The beverage and tea industry stands out as a rare exception, benefiting from a low profit margin base, which has allowed for some recovery in profits [1]

Core View - Bullish factors: Supply shortage due to reduced production in northern mines supports zinc prices, and increased downstream demand is driven by smelters' active procurement of domestic ore and lower processing fees [3] - Bearish factors: Hawkish remarks from the Federal Reserve suppress rate - cut expectations, leading to a collective correction in metals, and an increase of about 2000 tons in LME zinc inventory last week restricts the upside potential of prices [3] - Trading advice: Short - term focus on the support of tight mine supply for zinc prices, no future strategy provided [3] Processing and Terminal Demand - Data presented on galvanized coil market sentiment index, inventory, production, net exports, die - cast zinc alloy net imports, color - coated sheet net exports, zinc oxide net exports, real estate development investment and progress, sales and unsold area, land transaction area, and commercial housing transaction volume [4][7][10][12][14] Supply and Supply - side Profits - Data on zinc concentrate monthly import volume, TC, zinc ingot monthly production, production profit and processing fees, raw material inventory days, and various zinc inventories including LME, SHFE, and exchange inventories are provided [18][20][21][23][24] Futures and Spot Market Review - Information on the trends of domestic and foreign zinc prices, trading volume and open interest of Shanghai zinc futures, LME zinc closing price vs. US dollar index, LME zinc premium, and zinc ingot basis in different regions is presented [26][27][28][30][35]