Report Summary 1. Investment Ratings No investment ratings for the industry are provided in the report. 2. Core Views - **Lead**: The average price of SMM1 lead ingots and the closing price of the main lead futures contract decreased slightly. The supply of lead is temporarily tightened, with no expected increase in lead concentrate imports, rising processing fees, and reduced production in the secondary lead sector. Demand from the terminal market is weak, and it is expected that the lead price will remain in high - level consolidation in the short term, with limited upside potential [1]. - **Zinc**: The average price of SMM1 zinc ingots decreased slightly, while the closing price of the main zinc futures contract increased slightly. The supply of zinc is increasing, with sufficient raw material reserves in smelters and improved production enthusiasm. Demand has slightly improved but was affected by typhoon weather. Although the fundamentals of Shanghai zinc are weak, the low LME zinc inventory and the expected interest rate cut support the zinc price, and the downside space of Shanghai zinc is expected to be limited in the short term [1]. 3. Summary by Relevant Catalogs **Lead** - **Price and Market Indicators**: The average price of SMM1 lead ingots was 16,950 yuan/ton, down 0.15%; the closing price of the main futures contract was 17,065 yuan/ton, down 0.12%; the trading volume of the active futures contract decreased by 11.13% to 43,329 lots, and the open interest decreased by 4.49% to 61,071 lots; the LME3 - month lead futures closing price (electronic trading) was 2,002.50 dollars/ton, up 0.18% [1]. - **Supply**: Lead concentrate imports have no expected increase, and processing fees are likely to rise. Some primary lead smelters have maintenance plans, and the start - up rate fluctuates slightly. In the secondary lead sector, due to raw material and loss factors, the start - up rate is less than 30%, and the supply is temporarily tightened [1]. - **Demand**: The terminal market shows no significant improvement, and dealers mainly digest inventory. Production enterprises produce according to sales. Attention should be paid to the pre - holiday inventory replenishment of downstream enterprises [1]. - **News**: A small secondary lead smelter in South China has resumed production, mainly for long - term order delivery. On September 23, the [LME0 - 3 lead] was at a discount of 42.13 dollars/ton, and the open interest increased by 953 lots to 160,598 lots [1]. **Zinc** - **Price and Market Indicators**: The average price of SMM1 zinc ingots was 21,750 yuan/ton, down 0.28%; the closing price of the main futures contract was 21,860 yuan/ton, up 0.07%; the trading volume of the active futures contract decreased by 12.45% to 109,733 lots, and the open interest increased by 1.07% to 141,867 lots; the LME3 - month zinc futures closing price (electronic trading) was 2,922.50 dollars/ton, up 1.14% [1]. - **Supply**: Smelters have sufficient raw material inventories, and zinc ore processing fees are rising. The profit and production enthusiasm of smelters have improved, and the output shows an obvious increasing trend [1]. - **Demand**: Demand has slightly improved but was affected by typhoon weather, causing some enterprises in South China to shut down for about two days. The export window for zinc ingots may open as the Shanghai - London ratio deteriorates [1]. - **News**: The zinc output of Antamina Mine is expected to increase by 67% this year to 450,000 tons, offsetting a 12% decrease in copper output. On September 23, the [LME0 - 3 zinc] was at a premium of 43.16 dollars/ton, and the open interest increased by 493 lots to 216,077 lots [1]. 4. Trading Strategies - **Lead**: Temporarily hold a wait - and - see attitude [1]. - **Zinc**: Try to go long at low prices with a light position [1].

Report Summary 1) Report Industry Investment Rating No information provided. 2) Core Views - The lead market is in a state of weak supply and demand with no obvious contradictions. Tight raw materials and peak - season expectations support lead prices. With Powell's dovish remarks and positive domestic sentiment, lead prices will maintain range - bound consolidation [1]. - The zinc market has an increase in both zinc ore and zinc ingot supply, while demand is in the off - season and inventory is accumulating. However, due to the low LME zinc inventory overseas, the LME 0 - 3 shifting to a back structure, and high capital concentration, LME zinc has been rising. In the short term, Shanghai zinc may show a strong - side consolidation under the influence of external markets and macro - sentiment [1]. 3) Summary by Relevant Catalogs Price and Market Data - **Lead**: SMM1 lead ingot average price was 16,725 yuan/ton with 0.00% change; futures主力合约收盘价 was 16,850 yuan/ton, down 0.03%. LME 3 - month lead futures (electronic) closed at 1,994 dollars/ton, down 0.47%. The trading volume of the active futures contract increased by 5.94% to 42,223 hands, and the open interest increased by 0.95% to 51,504 hands [1]. - **Zinc**: SMM1 zinc ingot average price was 22,080 yuan/ton, up 0.23%; futures主力合约收盘价 was 22,325 yuan/ton, up 0.68%. LME 3 - month zinc futures (electronic) closed at 2,865.5 dollars/ton, up 1.15%. The trading volume of the active futures contract decreased by 10.03% to 125,688 hands, and the open interest decreased by 7.34% to 107,662 hands [1]. Market News - **Lead**: A small - and - medium - sized lead - zinc mine project in Qinghai completed its 10 - day autumn maintenance, and production resumed in August. On September 1st, the [LME0 - 3 lead] was at a discount of 42.47 dollars/ton, and the open interest decreased by 686 hands to 160,389 hands [1]. - **Zinc**: Since September 1st, many galvanized sheet plants in Hebei have been on holiday due to the approaching National Day, and the resumption time is undetermined. Some plants in other regions have chosen to conduct maintenance or stop production due to vehicle transportation restrictions. On September 1st, the [LME0 - 3 zinc] was at a premium of 14.98 dollars/ton, and the open interest increased by 1,018 hands to 192,517 hands [1]. Fundamental Analysis - **Lead**: There is no expected increase in lead concentrate imports, and processing fees are likely to rise. Some primary lead smelters have maintenance plans, and the operating rate has declined slightly. For secondary lead, the price of waste lead batteries is likely to rise, and some smelters have reduced or stopped production due to raw material shortages or cost - price inversion. The terminal market shows no significant improvement, and dealers are mainly digesting inventory [1]. - **Zinc**: Smelters have sufficient raw material stocks, and zinc ore processing fees are rising. Domestic zinc concentrate processing fees remained flat at 3,900 yuan/metal ton last week, and the import zinc ore processing fee index increased to 93.75 dollars/dry ton. Smelter profits and production enthusiasm have improved, and production is increasing. However, due to the off - season and environmental protection restrictions in the north, some downstream industries' operating rates have weakened, and the enthusiasm for purchasing zinc ingots is limited [1].

Report Summary 1. Investment Rating The report does not provide an industry investment rating. 2. Core Viewpoints - The lead market shows no significant contradictions with both supply and demand increasing. Supported by tight raw materials and peak - season expectations, the short - term lead price is expected to move in a range [1]. - For the zinc market, considering the macro situation and the increase in both zinc ore and zinc ingot supply during the off - season of demand, with continued inventory accumulation in the domestic market and a continuous decline in overseas LME zinc inventory providing some support, the short - term zinc price is also expected to move in a range [1]. 3. Summary by Related Catalogs Lead - **Price and Market Data**: The average price of SMM1 lead ingots remained flat compared to the previous day, while the closing price of the Shanghai lead futures main contract rose 0.30% from the previous day. The LME3 - month lead futures (electronic) closed at $1,973.50 per ton, up 0.13%. The trading volume of the active futures contract decreased by 10.92%, and the open interest decreased by 2.80%. The LME lead inventory remained unchanged, while the Shanghai lead warehouse receipt inventory decreased by 1.40%. The Shanghai - London lead price ratio increased by 0.17% [1]. - **Industry News**: Some small - scale secondary lead smelters in South China stopped production due to losses and stopped purchasing waste lead - acid batteries. They plan to resume production when the raw material inventory reaches around 5,000 tons. On August 18, the [LME0 - 3 lead] was at a discount of $44 per ton, and the open interest decreased by 522 to 159,114 contracts [1]. - **Fundamentals**: There is no expected increase in lead concentrate imports, and processing fees are likely to rise. Primary lead smelters that had maintenance are gradually resuming production, with stable - to - increasing production. In the secondary lead sector, due to high waste battery prices, limited supply, and strong hoarding sentiment among recyclers, some smelters have reduced or stopped production, resulting in relatively low overall production. The demand side shows no significant improvement, with dealers mainly consuming inventory and producers producing based on sales [1]. Zinc - **Price and Market Data**: The average price of SMM1 zinc ingots decreased by 0.45% from the previous day, and the closing price of the Shanghai zinc futures main contract decreased by 0.60%. The trading volume of the active futures contract increased by 37.72%, and the open interest increased by 51.62%. The LME zinc inventory remained unchanged, and the Shanghai zinc warehouse receipt inventory also remained unchanged. The LME3 - month zinc futures (electronic) closed at $2,770 per ton, down 0.25%. The Shanghai - London zinc price ratio decreased by 0.35% [1]. - **Industry News**: Peru's Romina zinc project has reached 50% completion and is expected to be officially put into production in Q2 2026. A zinc smelter in the northwest plans to continue its maintenance from September to October, with the expected impact to be made up in November - December. On August 18, the [LME0 - 3 zinc] was at a discount of $8.65 per ton, and the open interest increased by 3,010 to 193,998 contracts [1]. - **Fundamentals**: Zinc smelters have sufficient raw material inventories, and zinc ore processing fees are rising. The production of zinc is showing an upward trend. On the demand side, downstream enterprises mainly consume existing inventory, but due to concerns about future production cuts, some terminals have stockpiled goods, leading to a rebound in galvanizing production [1].

1. Report Industry Investment Rating - Not provided in the content 2. Core Views - For lead, the fundamentals show that primary lead smelters have basically resumed production with increased output in March, but there may be a decline in April in Henan due to maintenance. The recycled lead market faces a shortage of waste batteries, and the overall price is still firm. The demand side is in the off - season, with limited support for lead prices. However, due to the US tariff policy change, lead prices may rebound, and short - term unilateral operations are recommended [1]. - For zinc, the fundamentals indicate that smelters have sufficient raw material reserves, and the zinc concentrate processing fee is rising, leading to an obvious upward trend in production. The demand side has different performances in different sectors. Recently, non - ferrous metals mainly follow macro - sentiment fluctuations. After the change in the US tariff policy, zinc prices may have a small rebound, and continuous attention should be paid to macro - sentiment changes [1]. 3. Summary by Related Catalogs 3.1 Lead Market Data - SMM1 lead ingot average price was 16,450 yuan/ton, down 1.05%. The futures主力合约收盘价 was 16,410 yuan/ton, down 0.79%. The LME3 - month lead futures收盘价 (electronic disk) was 1,865 dollars/ton, down 0.21%. The沪伦铅价比值 was 8.80, down 0.57% [1]. - The沪铅基差 was 40 yuan/ton, down 45 yuan. The升贴水 - LME 0 - 3 was - 28.66 dollars/ton, down 0.10 dollars. The沪铅近月 - 沪铅连一 was - 45 yuan/ton, down 50 yuan [1]. - The期货活跃合约成交量 was 54,274 hands, up 10.24%. The期货活跃合约持仓量 was 41,816 hands, down 2.12%. The成交持仓 ratio was 1.30, up 12.62%. The LME inventory was 235,600 tons, unchanged. The沪铅仓单库存 was 60,841 tons, down 1.37% [1]. 3.2 Zinc Market Data - SMM1 zinc ingot average price was 22,130 yuan/ton, down 1.51%. The期货主力合约收盘价 was 21,930 yuan/ton, down 1.64%. The LME3 - month zinc futures收盘价 (electronic disk) was 2,620 dollars/ton, up 2.22%. The沪伦锌价比值 was 8.37, down 3.78% [1]. - The沪锌基差 was 200 yuan/ton, up 25 yuan. The升贴水 - LME 0 - 3 was - 3.00 dollars/ton, up 8.61 dollars. The沪锌近月 - 沪锌连一 was 290 yuan/ton, up 225 yuan [1]. - The期货活跃合约成交量 was 235,271 hands, down 9.67%. The期货活跃合约持仓量 was 75,249 hands, down 5.55%. The成交持仓 ratio was 3.13, down 4.37%. The LME inventory was 123,150 tons, unchanged. The沪锌仓单库存 was 7,606 tons, down 12.13% [1]. 3.3 Lead - related News - A newly - built large - scale recycled lead smelter in East China may start production between August and September this year as some equipment is still to be installed [1]. - On April 8, the [LME0 - 3 lead] was at a discount of 29.16 dollars/ton, and the position was 153,812 hands, down 1,305 hands [1]. 3.4 Zinc - related News - Ivanhoe Mines announced that in Q1 2025, the Kipushi concentrator processed a record 151,000 tons of ore with an average feed grade of 32.5%, producing 43,000 tons of zinc in concentrate with a zinc grade of over 53%. The concentrator will continue to increase production in Q2 and is expected to complete the expansion plan by the end of Q3 2025 to reach an annual zinc production of 250,000 tons [1]. - On April 8, the [LME0 - 3 zinc] was at a discount of 12.15 dollars/ton, and the position was 218,013 hands, down 7,601 hands [1].