【Zinc Concentrate Production Update】According to SMM, a zinc mine in Southwest China resumed production in June, increasing zinc concentrate output by approximately 500 metal tonnes month-on-month. Production is expected to continue recovering in July and return to normal operating levels.

According to SMM, a zinc mine in North China continued processing lower-grade ore throughout June, resulting in a month-on-month decline of approximately 500 metal tonnes in zinc concentrate production. Output is expected to decrease further in July.

[Zinc Concentrate Production Update] SMM understands that a mine in central China plans to undergo maintenance and suspend production for a short period in July, which is expected to result in a MoM reduction of approximately 500 mt in metal content of zinc concentrates in July.

[Zinc Concentrate Production Update] SMM understands that a zinc mine in southwest China remained suspended throughout June. The resumption of production is now expected to be delayed until mid-July, which is expected to bring an increase of nearly 500 mt in metal content.

Time flies as the midpoint of 2026 approaches. The zinc concentrate market has witnessed another extraordinary price cycle this year. As of June 12, domestic zinc concentrate treatment charges (TCs) plunged to -50 yuan per metric ton of zinc metal, marking the arrival of negative TCs. Meanwhile, TCs for imported zinc concentrate tumbled to -71.2 US dollars per dry metric ton, both hitting all-time record lows.

[Zinc Concentrate Production Information] According to SMM, a mine in northeastern China has remained shut down this year due to certain reasons. The mine currently plans to gradually resume production in July, and SMM will continue to track its subsequent performance.

On June 3, Luoping Zinc & Electricity issued an announcement stating that the Puding County Emergency Management Bureau discovered safety issues at Xiangrong Mining during an on-site inspection. Currently, Xiangrong Mining's beneficiation plant and tailings dam have ceased operations. The ore mined by the company's subsidiaries was all processed through Xiangrong Mining's beneficiation plant to produce zinc concentrates. If the subsequent remediation measures or rectification progress for Xiangrong Mining's tailings dam is slow, or if the renewal procedures for the Safety Production Permit cannot be completed smoothly, it will adversely affect the company's self-produced raw materials (primarily zinc concentrates).

SMM compiled production data from 20 major miners outside China. Based on disclosed production figures, these 20 miners produced a total of 1.282 million mt of zinc ore in Q1 2026, down 54,300 mt YoY (-4.1%) and down 119,500 mt QoQ (-8.5%). Ex-China zinc concentrates production declined significantly in Q1 2026!

As mid-year approaches, financial reports of major listed overseas mining companies for the first quarter have all been released. A combination of earthquakes, falling ore grades, floods and other disruptions has hampered global mine operations, driving down overseas zinc concentrate output both year-on-year and quarter-on-quarter in Q1 2026.

[Peru's "Gas Shortage" Energy Crisis Disrupts Zinc Concentrates Supply] Due to a rupture in Peru's natural gas pipeline (Megantoni district, Cusco province), the country fell into a "gas shortage" predicament, with electricity production and fuel supply severely affected. State-owned oil company Petroperú plunged into a serious financial crisis, and Peru is facing a severe nationwide energy crisis.