[SMM Zinc Morning Meeting Minutes: LME Zinc Ingot Inventory Drops Below 100,000 mt, LME Zinc Center Shifts Higher] Last Friday, LME zinc opened at $3,615/mt. After the opening, it drifted slowly higher, then declined rapidly in the afternoon session to test a low of $3,600/mt. Subsequently, LME zinc consolidated and rebounded again. Towards the end of the session, it touched a high of $3,648.5/mt, finally settling up at $3,640/mt, gaining $30.5/mt...

[SMM Zinc Morning Comment: China’s Zinc Concentrate TCs Continue to Decline, SHFE Zinc Gains in Night Session] The most-traded SHFE zinc 2609 contract opened at 25,010 yuan/mt, after the open it consolidated higher, hitting a high of 25,140 yuan/mt in early trading, then it pulled back to near the daily average line, dipped to a low of 24,950 yuan/mt during the session, afterwards, it consolidated around the daily average line, and eventually closed up at 25,065 yuan/mt..

[Frequent disruptions in China’s supply side; TCs fell in many regions of China in August]: On a weekly basis, the SMM Zn50 domestic weekly average TC fell 400 yuan/mt Zn WoW to -1,150 yuan/mt Zn, and the SMM Imported Zinc Concentrate Index fell $3.5/dmt WoW to -$98.13/dmt. On a monthly basis, the SMM Imported Zinc Concentrate Index fell $17.01/dmt MoM in July to -$89.81/dmt....

[Zinc Ingot Export Window Opening? A Nearly 20-Year Rare Opportunity Reemerges!] As of July 28, LME zinc inventory (including non-registered warrants) had pulled back to 101,800 mt, down about 20,000 mt from mid-June. Amid continued destocking outside China, the LME zinc market structure shifted from contango to backwardation, and the backwardation structure kept widening. On July 28, the LME zinc Cash-3M spread strengthened to $61.09/mt. In stark contrast, zinc consumption in China remained in the traditional off-season, with SMM-reported social inventory of zinc ingots across seven domestic markets holding steady at a high level of around 260,000 mt. The supply-demand patterns in China and overseas clearly diverged, and the SHFE/LME zinc price ratio weakened all the way. Against this backdrop, the long-dormant export window for Chinese zinc ingots reappeared, and discussions in the market about reverse arbitrage involving "buying SHFE zinc, selling LME zinc" noticeably heated up...

Befesa reported adjusted EBITDA of €124 million for H1 2026, up 11% year on year. Its steel dust recycling segment generated €104 million of adjusted EBITDA, up 8.3%, with margin expanding by 2.5 percentage points to 27.3%. Higher volumes, stronger zinc prices and operating efficiencies supported the result. Steel dust plant utilization averaged 67.4%, up 3.7 percentage points year on year. Befesa maintained its full-year adjusted EBITDA guidance of €250–270 million and expects to finish near the upper end of the range. The U.S. business was the main volume-growth contributor, with Q2 throughput up 33% year on year following new EAF steel dust supply contracts; U.S. utilization improved by 11 percentage points, while Europe operated at a 91% load factor. Higher waelz oxide sales contributed to a €3 million EBITDA gain, and an average Q2 LME zinc price of $3,463/t, up 31% year on year, added €7 million. Befesa said 2026 zinc concentrate TC settled at $85/t, while spot TCs remained historically low. It has hedged 60–70% of its zinc exposure for 2026–2028, with 2027 and 2028 prices locked at $3,000/t and $3,100/t, respectively.

[SMM Zinc Morning Comment] Overnight, the most-traded SHFE zinc 2609 contract opened at 24,750 yuan/mt. In early trading, it shot up to touch 24,760 yuan/mt. Then, as bulls reduced positions, the price pulled back and fell to a low of 24,655 yuan/mt. Late in the session, as bears reduced positions, the price rebounded slightly and moved sideways, finally closing down at 24,690 yuan/mt, down 75 yuan/mt, or 0.30%. Trading volume fell to 34,929 lots, and open interest decreased by 1,850 lots to 103,000 lots.