Report Summary 1. Report Industry Investment Rating No information provided. 2. Core Viewpoints - For lead, downstream is in the consumption off - season, with high risk of inventory accumulation due to consumption loss during the Dragon Boat Festival. However, due to the continuous shortage of waste batteries and increased losses of secondary lead smelters, lead prices may rebound in the short - term. The effectiveness of cost support and macro uncertainties should be monitored [1]. - For zinc, the market has strong supply and weak demand. Although inventory is relatively low and provides short - term support, in the long - term, as TC has room to rise, zinc prices may decline. A strategy of short - selling on rebounds is recommended, and macro - sentiment disturbances should be continuously monitored [1]. 3. Summary by Related Catalogs Lead - **Price and Market Data**: On June 5, 2025, the average price of SMM1 lead ingots was 16,425 yuan/ton, up 0.31% from the previous day; the closing price of the main Shanghai lead futures contract was 16,670 yuan/ton, up 0.60%. The LME 3 - month lead futures closing price (electronic trading) was 1,984 dollars/ton, down 0.10%. The trading volume of the active futures contract was 35,010 lots, up 22.67%, and the open interest was 52,496 lots, down 5.49%. The LME inventory was 281,550 tons, unchanged, and the Shanghai lead warrant inventory was 41,698 tons, up 3.43% [1]. - **Industry News**: An large secondary lead smelter in East China has resumed production, but its output is unstable due to environmental inspections. On June 3, Canadian mining company Americas Gold and Silver reached a 100 - million - dollar senior secured loan financing agreement and a concentrate off - take agreement for its Galena project [1]. - **Fundamentals**: Primary lead production is stable with a slight increase. In secondary lead, rising waste battery prices, limited supplies, and sellers' reluctance to sell have led to cost - price inversion and reduced production in some smelters. Demand is weak during the off - season, providing limited support for lead prices [1]. Zinc - **Price and Market Data**: On June 5, 2025, the average price of SMM1 zinc ingots was 22,840 yuan/ton, up 0.53% from the previous day; the closing price of the main Shanghai zinc futures contract was 22,420 yuan/ton, up 1.08%. The LME 3 - month zinc futures closing price (electronic trading) was 2,704 dollars/ton, down 0.28%. The trading volume of the active futures contract was 169,465 lots, up 9.02%, and the open interest was 123,944 lots, up 0.99%. The LME inventory was 136,275 tons, unchanged, and the Shanghai zinc warrant inventory was 1,376 tons, down 17.85% [1]. - **Industry News**: A zinc smelter in South China will conduct equipment maintenance for 10 - 15 days this month, expected to affect about 2,000 tons of production. On June 4, Canadian mining company Hudbay Minerals temporarily closed its Snow Lake mine due to wildfires [1]. - **Fundamentals**: Zinc smelters have sufficient raw material stocks, and zinc concentrate processing fees are rising. The supply situation has improved, and smelter profits and production enthusiasm are increasing. However, demand is weak during the off - season, and the operating rates of the three major sectors have declined significantly [1].