According to SMM insights, a zinc smelter in Central China began maintenance at the end of May and plans to return to normal operation on June 15, with an overall impact of approximately 5,000 mt.

As we near the midpoint of the year, zinc concentrate treatment charges (TCs) have repeatedly tumbled to historic lows. As of June 5, the average TC for domestic zinc concentrate fell to 50 yuan per metric ton of metal content, while the TC for imported zinc concentrate dropped to -70.75 US dollars per dry metric ton.

SMM, June 4 — According to SMM, Baiyin Nonferrous Group's Northwest Lead-Zinc Smelter has launched a public tender for the sale of approximately 100 tonnes of crude cadmium from its inventory. A minimum of three registered bidders is required for the auction to proceed. The registration deadline is 17:00 on June 9, 2026, with bidding commencing at 15:00 on June 10, 2026. Market participants noted that given the recent stability in cadmium prices, this tender warrants close attention, as it can serve as an indicator of the strength or weakness of market demand and provides a useful reference for the future direction of cadmium prices.

SMM June 4 News: According to SMM, the Northwest Lead-Zinc Smelter under Baiyin Nonferrous Group Co., Ltd. launched a public tender for the sale of approximately 100 mt of crude cadmium. Specifically, according to the official announcement, the base bidding price was set at a discount of 2,000 yuan/mt to the SMM average price, with the highest bidder winning after the auction. A minimum of three registered bidders is required for the auction to proceed. The registration deadline is 17:00 on June 9, 2026, and the bidding will start at 15:00 on June 10, 2026. Market participants noted that since cadmium prices have remained stable recently, this tender is also worth close attention, as it can to some extent reflect the strength or weakness of market demand and serve as a reference for the future direction of cadmium prices.

[June Refined Zinc Production to Decline, Smelter Profitability in Focus] According to SMM data, China's refined zinc production in May 2026 was down 0.41% MoM but up over 5.8% YoY. Cumulative smelter production from January to May was up nearly 5.8% YoY, exceeding expectations.

On May 29, Nexa Resources said its Cajamarquilla zinc smelter in Peru is gradually resuming production following the incident reported on May 13. the electrolysis lines are now fully operational, while one casting line has been back in operation and is currently producing zinc bars. Nexa plans to restart the second casting line within the next few days, followed by the final casting line by mid-June. As a result of the temporary disruption, Nexa estimates a refined zinc production impact of approximately 7,000 mt in Q2 2026, equivalent to around 2% of annual production. The company expects to recover the lost output during H2 2026 and has kept its 2026 sales guidance unchanged. No material financial impact's expected from the incident, with the cause remain under investigation.