Core Viewpoint - Zinc prices have shown increased volatility and a steady upward trend since November, influenced by divergent domestic and international fundamentals and signals from Federal Reserve officials regarding a potential rate cut in December [1] Supply and Demand Dynamics - The global zinc market is experiencing a significant supply shortage, with a deficit of 373,700 tons from January to September 2025, a stark contrast to a surplus of 32,000 tons during the same period last year [2] - In September, the global refined zinc supply shortage reached 35,700 tons, with a year-on-year increase in the deficit of 20,000 tons [2] - The LME zinc spot price premium over futures contracts peaked at $323 per ton in October, indicating tightness in the overseas spot market [2] - Domestic zinc market conditions are relatively loose, with a 32.56% month-on-month decrease in zinc concentrate imports in October, but a cumulative increase of 36.59% year-on-year from January to October [2] Profitability and Production Trends - Domestic smelting enterprises are undergoing a profound shift in profitability, with losses in refined zinc production offset by strong prices for by-product sulfuric acid, maintaining overall profits in the range of -350 to 200 CNY per ton [3] - Zinc concentrate producers are achieving high profits of up to 5,500 CNY per ton, leading to a preference for using self-produced zinc concentrate and an increase in refined zinc exports, expected to rise significantly in November [3] Structural Changes in End-User Demand - The downstream zinc demand is experiencing notable structural differentiation, with varying impacts across different application sectors and regional markets [4] - The white goods sector is under pressure, with production of air conditioners, refrigerators, and washing machines down 14.1% year-on-year as of December 2025 [4] - In contrast, the new energy vehicle sector is witnessing robust growth, with global sales increasing by 23% year-on-year in October, reaching 1.9 million units [4] - Investment demand in infrastructure and real estate remains weak, with infrastructure investment down 0.1% year-on-year and real estate development investment declining by 14.7% [4] Inventory and Market Conditions - Global zinc inventory changes further illustrate the market's divergent dynamics, with a 121% year-on-year increase in SHFE zinc warehouse receipts and a 4% decrease in domestic social inventory [5] - LME zinc inventory has significantly decreased by 80% year-on-year, despite a 40% month-on-month increase, indicating a historically low absolute level of 51,900 tons [5] Macroeconomic Influences - The probability of a Federal Reserve rate cut has risen again, providing liquidity support for the global commodity market, which is favorable for zinc price trends [6] Fundamental Support Factors - The combination of overseas smelting plant production cuts, declining processing fees, high spot premiums, and low inventories provides strong support for zinc prices [7] - The closure of the refined zinc import window and the opening of the export window in the domestic market is expected to accelerate the flow of domestic zinc products overseas, alleviating supply pressure abroad and supporting domestic prices [7]

Core Insights - The company reported a significant decline in revenue for the first three quarters of 2025, with a total revenue of 1.302 billion yuan, a year-on-year decrease of 46.47% [1] - Despite the drop in revenue, the net profit attributable to shareholders increased by 104.45% to 20.109 million yuan [1] - The company's gross margin improved to 10.82%, up 4.02 percentage points year-on-year, while the net margin also saw an increase of 20.13% to 1.54% [1] Financial Performance - For the first three quarters of 2025, the company reported earnings per share of 0.04 yuan and a weighted average return on equity of 0.99% [1] - The third quarter of 2025 showed a gross margin of 10.14%, a year-on-year decrease of 3.21 percentage points, but a quarter-on-quarter increase of 0.41 percentage points [1] - The net margin for the third quarter was -1.32%, which is an 85.93% increase compared to the same period last year, but a decrease of 4.06 percentage points from the previous quarter [1] Expense Analysis - The company's period expenses for the third quarter amounted to 112 million yuan, an increase of 1.7307 million yuan year-on-year, with a period expense ratio of 8.62%, up 4.08 percentage points [2] - Sales expenses decreased by 38.44% year-on-year, while management expenses increased by 4.95% [2] - Research and development expenses decreased by 17.64%, and financial expenses increased by 18.91% [2] Shareholder Information - As of the end of the third quarter of 2025, the total number of shareholders was 41,500, a decrease of 6,684 shareholders or 13.86% from the end of the previous half [2] - The average market value of shares held per shareholder increased by 16.50% from 56,400 yuan to 65,700 yuan [2] Company Overview - The company, Xinjiang International Industry Co., Ltd., is located in Urumqi, Xinjiang, and was established on March 28, 1999, with its listing date on September 26, 2000 [2] - The main business activities include wholesale, sales, storage, and transportation of petroleum and petrochemical products, as well as oil refining and biodiesel processing [2] - The revenue composition includes 67.59% from oil and chemical product wholesale, 17.50% from entrusted processing of galvanized products, and other segments contributing smaller percentages [2]

Price and Basis - The price center has slightly increased this week, with Shanghai rebar at 3040 yuan, Beijing rebar at 3040 yuan, and Guangzhou rebar at 3000 yuan; Shanghai rebar basis at -6 yuan; Shanghai hot rolled at 3300 yuan, Lecong hot rolled at 3270 yuan, and Shanghai hot rolled basis at 50 yuan. Rebar basis has strengthened while hot rolled basis has weakened. The inter-period price difference has weakened, with the 1-5 price difference declining [1] Cost and Profit - On the cost side, the operating rate and daily output of coal mines in the Steel Union sample remain low, year-on-year at a low level; raw coal and coking coal inventories are in a destocking phase. Iron ore demand remains high with slight inventory accumulation. Recently, steel profits have significantly declined from high levels, with iron element costs decreasing and carbon element costs supported. Current profits from high to low are: steel billet > hot rolled > rebar > cold rolled [1] Supply - From January to September, iron element output increased by 5% year-on-year. Due to last year's high base in Q4, the annual growth rate is expected to narrow. There are signs of reduced iron water production, down by 10,000 tons to 2.39 million tons. This year, the incremental iron water is more directed towards steel billets and non-major materials, with major materials' output year-on-year remaining flat and limited growth. Since October, major materials' output has been running low, with a recent increase of 84,000 tons to 8.65 million tons (required 8.92 million tons). Among them, rebar output increased by 60,000 tons to 2.07 million tons, below the required amount (2.26 million tons). Hot rolled output increased by 6,000 tons to 3.225 million tons, slightly below the required amount (3.27 million tons). Previously, Tangshan had significant sintering production cuts, and market news indicates that due to environmental pressures, blast furnaces will limit production for a week next week [1] Demand - In terms of demand structure, domestic demand expectations remain weak; however, there is an expectation of policy support in Q4 (on the 18th, the Ministry of Finance announced the early issuance of the 2026 new local government debt limit). Exports remain high, and recent price declines support steel exports. During the National Day holiday, the required demand saw an out-of-season decline, but post-holiday demand continues to recover, with this period's required demand increasing by 17 to 8.92 million tons. Non-major materials' required demand remains flat compared to September; steel exports are temporarily stable, and the demand side has not collapsed. Year-on-year, due to last year's high basis in Q4, achieving a year-on-year increase in required demand this year is challenging. Among them, rebar required demand increased by 60,000 tons to 2.26 million tons; hot rolled required demand increased by 110,000 tons to 3.267 million tons [2] Inventory - The inventory of major materials decreased by 270,000 tons to 15.548 million tons; among them, rebar decreased by 186,000 tons to 6.22 million tons; hot rolled decreased by 40,000 tons to 4.15 million tons. Considering that the required demand has been restored to 8.927 million tons, and current production is below required demand, it is expected that the inventory center will maintain a year-on-year increase but show a declining trend month-on-month. From the destocking slope perspective, the destocking slope for rebar has steepened year-on-year, while the destocking slope for hot rolled is relatively gentle; attention should be paid to the progress of future production cuts in Tangshan [2] Outlook - This week, the required demand for major materials has recovered well, approaching last year's level. However, the year-on-year demand for off-market materials is relatively low. Currently, there is significant inventory accumulation for flat products (hot rolled, strip steel, galvanized), with strip steel experiencing two weeks of production cuts, leading to a shift to destocking. Following the sintering production cuts in Tangshan, there are limited production expectations for blast furnaces. If blast furnace production cuts can alleviate flat product inventory pressure, steel prices are expected to stabilize. On the cost side, carbon element costs are supported, while iron ore is expected to see slight inventory accumulation due to declining iron water expectations, which is anticipated to affect the material-mining ratio. Steel prices have declined significantly in the previous period, and steel mill profits have decreased. Before the inventory of flat products is alleviated, steel mill profits will continue to decline, suppressing production release. The January contract for rebar and hot rolled is expected to stabilize around 3000 and 3200 yuan, respectively, transitioning to a range-bound trend. The current strategy suggests to remain cautious. The long coal and short hot rolled arbitrage can continue to be held. Considering the recovery of hot rolled required demand to high levels and the expected production cuts in Tangshan, it is advisable to gradually exit the short position on the rebar-hot rolled spread. Until the steel production and inventory are cleared, steel mill profits will continue to converge [3]

1. Report Industry Investment Rating - No relevant content provided 2. Core Viewpoints of the Report - The export window for zinc is open, and there is a certain risk - reward ratio for internal - external reverse arbitrage, but it takes time to realize profits [3] - The domestic supply side of zinc faces continuous pressure, and the consumption peak season is coming to an end. This week, zinc prices rebounded significantly due to factors such as LME inventory depletion and strong external prices [5] 3. Summary by Related Catalogs 3.1 Market Review - **Price Changes**: The closing price of SHFE Zinc Main Contract last week was 22355, with a weekly increase of 2.48%, and the closing price of the night session yesterday was 22300, with a night - session decrease of 0.25%. The price of LmeS - Zinc 3 last week was 3019.5, with a weekly increase of 2.72% [8] - **Trading Volume and Open Interest Changes**: The trading volume of SHFE Zinc Main Contract last Friday was 130461, an increase of 41774 from the previous week, and the open interest was 120167, an increase of 42945 from the previous week. The trading volume of LmeS - Zinc 3 was 11517, an increase of 416 from the previous week, and the open interest was 223518, a decrease of 753 from the previous week [8] - **Spot - Futures Price Difference Changes**: The LME zinc premium changed by 50.52, the bonded area zinc premium decreased by 45, and the spot premium of Shanghai 0 zinc, Guangdong 0 zinc, and Tianjin 0 zinc also changed [8] 3.2 Industry Chain Vertical and Horizontal Comparison 3.2.1 Inventory - Zinc ore and smelter finished products are at high levels, while the visible inventory of zinc ingots has declined. Zinc ore inventory in Lianyungang and smelter raw material inventory are at high levels, while seven - region inventory and downstream raw material inventory have decreased [10][11] 3.2.2 Profit - Zinc ore profits are at the forefront of the industry chain, and smelting profits are at a historical median level. Mining enterprise profits are stable in the short term, smelting profits have declined, and galvanized pipe enterprise profits are stable at a relatively low level [12][13] 3.2.3 Production - The smelting production rate has declined, and the downstream production rate is at a historically low level. The production rates of zinc concentrate, refined zinc, and downstream galvanizing, die - casting zinc, and zinc oxide have all declined [14][15] 3.3 Trading Aspect 3.3.1 Spot - Spot premiums are differentiated. Overseas premiums are flat this week, and LME CASH - 3M has risen to a historical high with sharp fluctuations [18][20] 3.3.2 Spread - SHFE zinc maintains a C - structure, but there are certain changes in the far - end [22] 3.3.3 Inventory - Domestic inventory has decreased slightly this week, and the open interest - to - inventory ratio has continued to decline. LME inventory is mainly concentrated in Singapore, with a slight increase this week but still at a historically low level. Bonded area inventory has decreased, and the total global visible zinc inventory has increased slightly [25][31][33] 3.3.4 Futures - The domestic open interest is at a historical median level [34] 3.4 Supply 3.4.1 Zinc Concentrate - Zinc concentrate imports have rebounded significantly, domestic zinc ore production is at a historical low, import ore processing fees have decreased this week, and domestic ore processing fees continue to decline. Ore arrival volume is at a medium level, and smelter raw material inventory is abundant [37][38] 3.4.2 Refined Zinc - Smelting production has decreased but is still at a historically high level. Smelter finished product inventory has decreased but is also at a historically high level, and zinc alloy production is at a high level [45] 3.4.3 Recycled Zinc Raw Materials - The production rate of 87 independent electric arc furnace steel mills, the average price of galvanized pipe slag, the daily consumption of scrap steel by 147 steel mills, and the average price of Hunan secondary zinc oxide all show certain trends [48][49][50][51] 3.5 Zinc Demand - The consumption growth rate of refined zinc is positive. The monthly downstream production rate has increased slightly, mostly at a historically low - to - medium level. The production rates and inventory levels of downstream galvanizing, die - casting zinc, and zinc oxide all show certain characteristics [54][57] - The real estate market is still at a low level, and the power grid shows structural increments [73] 3.6 Overseas Factors - The prices of European natural gas, carbon, and electricity all show certain trends, which have an impact on the profitability of zinc smelters in European countries [75][76][77]

1. Report Industry Investment Rating - Not provided in the given content 2. Core Viewpoints of the Report - Zinc shows a pattern of strong overseas and weak domestic markets, with the export window opening, and the strength analysis is neutral to weak [2] - Zinc ingot inventory accumulation continues, and galvanizing start - up rate rebounds [3] - Domestic supply - side pressure remains high. In October, domestic zinc ingot supply is expected to increase, and the start - up rate will remain high. The traditional peak season in the consumption end is approaching the end, and the zinc price is under downward pressure this week [5] 3. Summaries According to Relevant Catalogs 3.1 Market Review - The closing price of SHFE zinc main contract last week was 21,815, with a weekly decline of 2.04%; the closing price of LmeS - zinc3 was 2,942.5, with a weekly decline of 1.41% [6] - In terms of trading volume and open interest changes, the trading volume and open interest of SHFE zinc main contract decreased compared with the previous week, while the open interest of LmeS - zinc3 increased [6] - In terms of inventory changes, SHFE zinc warehouse receipts, total inventory, and social inventory all increased, and LME zinc inventory also increased slightly [6] 3.2 Industry Chain Vertical and Horizontal Comparison 3.2.1 Inventory - Zinc ore and smelter finished products are at a high level, and the visible inventory of zinc ingots has declined [8] 3.2.2 Profit - Zinc ore profit is at the forefront of the industry chain, and smelting profit is at a historical median level [10] 3.2.3 Start - up Rate - The start - up rate of zinc smelting has declined, and the start - up rate of downstream industries is at a historically low level [12] 3.3 Trading Aspects 3.3.1 Spot - Spot premiums have strengthened slightly, and overseas premiums are relatively stable [16][18] 3.3.2 Spread - SHFE zinc presents a C - structure [21] 3.3.3 Inventory - This week, inventory continued to accumulate, and the open interest - to - inventory ratio continued to decline. LME inventory is mainly concentrated in Singapore, and the total global zinc visible inventory has increased slightly [26][32][35] 3.3.4 Futures - The domestic open interest is at a historical median level [36] 3.4 Supply 3.4.1 Zinc Concentrate - Zinc concentrate imports have rebounded significantly, domestic zinc ore production is at a historical median level, import concentrate processing fees continue to rise, and domestic concentrate processing fees have decreased [39] 3.4.2 Refined Zinc - Smelting output has decreased but is at a historical high, smelter finished product inventory has decreased but is also at a historical high, and zinc alloy output is at a high level [47] 3.4.3 Recycled Zinc Raw Materials - The start - up rate of 87 independent electric arc furnace steel mills is provided, along with prices of some recycled zinc - related products and waste steel consumption data [50][51][52] 3.5 Zinc Demand - Refined zinc consumption growth rate is positive, downstream monthly start - up rates have rebounded slightly and are mostly at historically low levels, and the real estate market is still at a low level while the power grid shows structural increments [56][58][71] 3.6 Overseas Factors - Data on European natural gas, carbon, and electricity prices are provided, along with the profitability of zinc smelters in some European countries [73][74][75]

Core Viewpoint - The recent Central Financial Committee meeting emphasized the need to regulate low-price disorderly competition among enterprises, guide companies to improve product quality, and promote the orderly exit of outdated production capacity. This policy signal has led to a noticeable recovery in the sentiment of the bulk commodity market, with some investors anticipating market benefits similar to those from the supply-side structural reforms of 2016 [3][4]. Policy Impact Analysis - Different periods may have varying policy focuses, necessitating an in-depth analysis of the core impact range of policies. Attention should be directed towards industries with severe overcapacity, widespread losses, high proportions of outdated capacity, and strong policy constraints [4]. - Industries such as polysilicon, industrial silicon, and PVC currently exhibit persistently low profit levels, aligning with the main objectives of policy regulation. The sustainability of profit improvement in these industries hinges on the enforcement strength of policies and the effectiveness of actual capacity clearance [4][5]. Historical Context - The aluminum industry serves as an example where strong policy constraints successfully led to sustained profit improvements during the last capacity reduction phase. Historical experience indicates that there is a certain lag between policy issuance and market rebound, ultimately relying on strict enforcement to achieve profit redistribution within the industry chain [4]. Current Industry Status - Leading companies in industries like polysilicon are beginning to formulate capacity optimization plans. However, due to differences in company nature, interest conflicts, and market constraints, the realization of substantial capacity clearance in the industry will require more time for validation [5]. Profit and Capacity Overview - A summary of key indicators for various bulk commodities, including profit levels, capacity concentration, and the nature of enterprises, has been compiled for reference [6]. - For example, the profit margins and capacity concentration for several commodities are as follows: - PVC: -13% profit margin, 40% capacity concentration, state-owned enterprises [9] - Polysilicon: -13.5% profit margin, 82.23% capacity concentration, private enterprises [10] - Urea: 20% profit margin, 28% capacity concentration, state-owned enterprises [9] - Copper products show varying profit margins, with electrolytic copper at 0.31% and lithium battery copper foil at 26.07% [10].

Report Industry Investment Ratings - No specific industry investment ratings are provided in the report. Core Views of the Report - The positive signals from the Sino - US economic and trade talks are expected to drive short - term strength in stock indices [1]. - The situation of asset shortage and weak economy is favorable for bond futures, but the central bank's short - term interest rate risk warning suppresses the upward movement [1]. - Different commodities have different trends: some are expected to rise, some to fall, and some to fluctuate, which are affected by factors such as supply - demand relationships, macro - economic conditions, and policy uncertainties [1]. Summary According to Relevant Catalogs Macro - finance - Stock indices are expected to be strong in the short term due to positive signals from Sino - US economic and trade talks [1]. - Bond futures are favored by asset shortage and weak economy, but short - term interest rate risk warnings limit upward movement [1]. Precious Metals - Gold is expected to fluctuate in the short term and has a solid long - term upward logic [1]. - Silver is expected to remain strong but there is a risk of a sharp pullback [1]. Non - ferrous Metals - Copper is expected to remain strong due to the boost of the Sino - US leaders' phone call [1]. - Aluminum may fluctuate weakly due to repeated macro - sentiment and weakening downstream demand despite low inventory support [1]. - Alumina may rebound in the short term due to rising spot prices, significant futures discounts, and mine - end disturbances [1]. - Nickel is expected to fluctuate in the medium - to - long term due to uncertainties in tariff policies and potential oversupply of primary nickel [1]. Black Metals - Iron ore may fluctuate as the iron - making volume is expected to peak and there is an expected increase in supply in June [1]. - Manganese silicon and silicon iron have different supply - demand situations, with manganese silicon having heavy warehouse receipt pressure and silicon iron having a tight supply - demand balance due to production cuts [1]. - Steel products such as hot - rolled coils and stainless steel have different trends based on factors like cost, supply, and demand [1]. Agricultural Products - Corn is expected to be strong in the medium term due to tightening supply - demand, but its upward potential is limited by domestic substitute grain prices [1]. - Soybean meal is expected to face pressure on the spot basis and near - month contracts due to expected inventory accumulation in June [1]. - Sugar production in Brazil is expected to change in the 2025/26 season, and the future production may be affected by the crude oil price [1]. Energy and Chemicals - Crude oil and fuel oil are expected to fluctuate, affected by OPEC+ production decisions, geopolitical situations, and seasonal consumption [1]. - PTA, ethylene glycol, and other chemical products have different trends based on factors such as cost, supply, and demand [1]. - Urea may rebound, while methanol is expected to fluctuate weakly in the short term [1]. Others - Shipping container freight on the European route has a "strong expectation, weak reality" situation, and certain trading strategies are recommended [1]. - LPG is expected to fluctuate weakly in the short term due to weak demand and lack of news guidance [1].

Group 1: Research Background - Steel mills are showing high production enthusiasm, with pig iron output reaching the highest level for the same period since March before starting to decline, leading to accumulated supply pressure [1] - Hebei, as the largest steel production base in China, accounts for 20%-30% of the national output, primarily in plate products, making its production dynamics significantly influential on the national market [1] - The demand for steel is expected to decline seasonally, but the "export rush" effect has shown strong resilience in steel demand, with export volumes increasing year-on-year [1] Group 2: Production and Output - Most steel mills have adopted an over-ordering strategy, with orders from downstream processing plants typically ranging from 15 to 30 days, and some products scheduled for production until the end of July [2] - Steel mills are currently enjoying decent profits, with immediate profits around 100-200 yuan per ton, and some mills achieving net profits exceeding 100 yuan per ton [2] Group 3: Export Situation - Export profits remain acceptable, with increases in the export volumes of rebar, steel billets, and wire rods, particularly to the Middle East and Africa, while reductions are noted in exports to South Korea and Japan [4] - There is potential for screening orders in steel billet exports, and while some believe that the export rush may deplete future demand, the actual impact may not be as significant as anticipated [4] Group 4: Inventory and Expectations - Inventory levels among steel mills and traders are low, with steel mill inventories dropping from 20,000 tons to 4,000 tons, indicating a need for inventory building based on market fluctuations [6] - Some anticipate that upcoming events such as the Shanghai Cooperation Organization summit in July and the World University Games in August may impact short-term supply, while others doubt the effectiveness of policy-driven production restrictions due to local GDP pressures [6] Group 5: Seasonal Demand Outlook - The negative feedback from the industrial sector in June may be difficult to realize, as steel mills are currently profitable and production is stable, making significant production cuts unlikely [7] - The resilience of plate demand is a key variable influencing the overall demand for steel during the off-season, with expectations that plate demand may outperform market predictions [7] Group 6: Specific Situations in Steel Mills and Processing Plants - A hot-rolled processing enterprise reported a production capacity of 4 million tons, with a focus on color-coated products, and is experiencing high demand, with orders extending to the end of July [9] - A steel mill's trading department noted that orders for various steel products are generally over 25 days, with net profits ranging from 50 to 100 yuan per ton, and a positive outlook on the market despite regional pressures [10] - A cold-rolled sales department indicated that exports are primarily directed towards Southeast Asia and the Middle East, with a notable increase in orders, although the overall export volume is slightly weaker compared to previous months [11] Group 7: Market Dynamics and Price Trends - The current market is characterized by strong realities and weak expectations, with healthy inventory levels and order volumes, suggesting that the anticipated negative feedback may not materialize [8] - The steel price may experience fluctuations, with potential upward movement if the current strong reality persists, despite the overall market sentiment being cautious [12]

1. Report Industry Investment Ratings - Nickel - Rolling short [1] - Stainless steel - Wait - and - see [1] - Zinc - Bearish outlook [5] 2. Core Views - **Nickel and Stainless Steel**: The rumor of the Philippine nickel ore ban has been falsified, and the logic returns to the fundamentals. There is still an excess pressure in the nickel market, and it is recommended to roll short between 120,000 - 127,000 [1][2]. - **Zinc**: The impact of tariffs has temporarily subsided. In the short - term, supply is stable with a slight increase, while the peak demand season has passed. Manufacturers are pessimistic about terminal demand, so it is overall bearish [3][4]. 3. Summary by Relevant Catalogs **Nickel and Stainless Steel** - **Macro & Industry News**: In April 2025, China's nickel plate production was 33,120 tons, a month - on - month decrease of 2.1% and a year - on - year increase of 6.9%. The production of nickel sulfate was 29,600 tons, a month - on - month decrease of 12.9% and a year - on - year decrease of 17.8% [1]. - **Supply**: The rumor of the Philippine nickel ore ban is falsified. The mining end is likely to turn looser. The overall supply of domestic electrolytic nickel has shrunk month - on - month but remains at the highest level in the same period in history. The production cost of electrowinning nickel is expected to decline [1]. - **Demand**: In the process of producing nickel sulfate from nickel beans, the nickel cost is about 127,000 yuan. The demand support from downstream nickel sulfate cost is about 134,000 yuan/ton, and the profit critical point of external procurement manufacturers is about 137,000 yuan/ton. The possibility of stainless steel production cuts is small [2]. **Zinc** - **Macro & Industry News**: In April 2025, the retail sales of the national passenger car market were 1.755 million vehicles, a year - on - year increase of 14.5% and a month - on - month decrease of 9.4%. The cumulative retail sales this year were 6.872 million vehicles, a year - on - year increase of 7.9% [3]. - **Supply**: Although the profits of mining enterprises have shrunk, the TC price has not declined, indicating no production cuts at the mining end. The supply side generally shows a loosening trend, and the possibility of production cuts for both smelting and integrated enterprises is extremely small [3]. - **Demand**: The peak demand season is approaching the end. The production enthusiasm of galvanizing, die - casting alloy, and zinc oxide manufacturers is low, and the terminal demand is expected to decline [4].