Report Industry Investment Rating - Not provided Core Viewpoints - For lead, the price is expected to be strong after a short - term correction due to tight raw material supply and improved macro - sentiment. The recommended trading strategy is to try long positions at low prices [1]. - For zinc, the price is strong due to warm macro - sentiment and supply contraction, but the limited demand drags it down, and there is a risk of a high - level decline. The recommended trading strategy is to look for short - selling opportunities during the pull - back after a rally [1]. Summary by Related Catalogs Lead Price and Market Data - SMM1 lead ingot average price was 17,100 yuan/ton, down 0.58% [1]. - Shanghai lead futures main contract closed at 17,170 yuan/ton, down 0.98% [1]. - Shanghai lead basis was - 70 yuan/ton, up 70 yuan/ton [1]. - LME 0 - 3 lead spread was - 51.57 dollars/ton, down 2.42 dollars/ton [1]. - Futures active contract volume was 35,748 lots, down 6.08% [1]. - Futures active contract open interest was 40,620 lots, down 5.77% [1]. - LME lead inventory was 236,925 tons, unchanged [1]. - Shanghai lead warrant inventory was 15,631 tons, up 0.64% [1]. - LME 3 - month lead futures (electronic) closed at 1,998.50 dollars/ton, unchanged [1]. - Shanghai - London lead price ratio was 8.59, down 0.98% [1]. Fundamental Information - Lead concentrate imports have no expected increase, and processing fees are likely to rise. Last week, more smelters had maintenance, and primary lead production decreased. In the secondary lead sector, some smelters also had maintenance, leading to a decline in overall production [1]. - Electric bicycle battery consumption is weakening, while the automotive battery market is approaching the traditional replacement peak, and medium - and large - sized enterprises are starting to build inventories [1]. - Many secondary lead smelters reported a decrease in scrap battery arrivals, tightening raw material supply, and some smelters cut production due to raw material shortages [1]. Zinc Price and Market Data - SMM1 zinc ingot average price was 23,120 yuan/ton, up 0.26% [1]. - Shanghai zinc futures main contract closed at 23,070 yuan/ton, down 0.92% [1]. - Shanghai zinc basis was 50 yuan/ton, up 275 yuan/ton [1]. - LME 0 - 3 zinc spread was 166.73 dollars/ton, up 3.73 dollars/ton [1]. - Futures active contract volume was 129,703 lots, down 28.04% [1]. - Futures active contract open interest was 101,254 lots, down 6.82% [1]. - LME zinc inventory was 58,150 tons, unchanged [1]. - Shanghai zinc warrant inventory was 56,067 tons, down 3.99% [1]. - LME 3 - month zinc futures (electronic) closed at 3,130.50 dollars/ton, unchanged [1]. - Shanghai - London zinc price ratio was 7.37, down 0.92% [1]. Fundamental Information - Refineries are actively purchasing domestic zinc concentrates, and the domestic concentrate supply is tight. Processing fees are continuously decreasing, and there is an expectation of further decline [1]. - Due to tight concentrate supply and decreasing TC, the scope of refinery production cuts has expanded, and the supply side has contracted. The demand side is still weak, with reduced outdoor construction in the north due to cold weather and some downstream production affected by environmental protection. After the zinc price rose last week, downstream purchasing decreased [1].