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.

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.

[Teck Q1 2026 Results Released] On April 22, Teck released its Q1 2026 report. The report showed that its total zinc concentrates production for the quarter was 120,300 mt, down 12% YoY, in line with the planned production plans for the Red Dog mine and the Antamina mine. Specifically, the Red Dog mine produced 106,200 mt of zinc concentrates in Q1, down 9% YoY, mainly due to lower grades, in line with mining plan expectations. Antamina's zinc concentrates production attributable to Teck was 14,100 mt, down 31% YoY, mainly due to lower zinc grades and recovery rates, in line with mining plan expectations.

Teck Resources released unaudited production and sales results for the fourth quarter and full year 2025, and reaffirmed its previously disclosed production and unit cost guidance for 2026–2028. In 2025, zinc in concentrate production totaled 565 kt, coming in at the upper end of the guidance range of 525–575 kt. Fourth-quarter zinc concentrate sales reached 157.2 kt, with shipments from the Red Dog mine largely completed early in the quarter, consistent with normal seasonal sales patterns. Refined zinc production at the Trail Operations amounted to 229.9 kt in 2025, also at the top end of the guidance range of 190–230 kt. Teck noted that it continues to prioritize processing of residues to enhance profitability and cash generation, rather than maximizing refined zinc output. Looking ahead, Teck maintained its overall production guidance for 2026–2028, with refined zinc output expected at 190–230 kt in 2026, 260–300 kt in 2027, and 260–300 kt in 2028. However, following an updated mine plan finalized in the fourth quarter, 2026 zinc in concentrate production guidance for the Antamina mine was revised downward to 35–45 kt, from 55–65 kt previously.

[Zinc Concentrate Production] Teck released its Q3 2025 report, with its zinc concentrate production for the quarter at 150,500 mt, a 5% YoY decrease. This was mainly due to lower production at the Red Dog mine, which was partially offset by a significant increase in production at the Antamina mine as it processed more copper-zinc ore according to the mining plan. Among these, the Red Dog mine's zinc concentrate production in Q3 was 122,000 mt, and the portion of Antamina mine production attributable to Teck was 28,500 mt.

Anglo American (LON: AAL) and Teck Resources’ (TSX: TECK.A, TECK.B)(NYSE: TECK) planned $53 billion merger could create the world’s largest copper mine by the early 2030s, surpassing BHP’s Escondida in Chile, according to analysts.

The SMM Imported Zinc Concentrate Index for this week is $76.25/dmt, with a 3.39% WoW increase. The SMM Imported Lead Concentrate average spot TC for this week is $-60/dmt, down WoW by another $5/dmt.

On July 24th, Canada-based Teck Resources released its Q2 2025 report. Zinc concentrate production at the Red Dog mine reached 136,600 tonnes, slightly lower year-on-year due to declining ore grades, while lead concentrate output remained stable at 27,500 tonnes. The concentrate shipping season commenced on July 11th. Red Dog's Q2 zinc concentrate sales totaled 35,100 tonnes, down 35% YoY due to timing of sales (e.g., customer scheduling, logistics), though still above the previously disclosed guidance range of 25,000 to 35,000 tonnes. Teck expects the seasonal inventory build-up in the first half to reverse in Q3, and has issued Q3 sales guidance of 200,000–250,000 tonnes for Red Dog zinc concentrate. Annual production guidance remains unchanged at 430,000–470,000 tonnes for zinc and 85,000–105,000 tonnes for lead. On the refining side, Trail Operations produced 50,900 tonnes of refined zinc in Q2, a 14,000-tonne decline from the same period last year. The reduction aligns with Teck’s previously disclosed plan to optimize profitability amid challenging smelter market conditions. Annual refined zinc production guidance for Trail remains unchanged at 190,000–230,000 tonnes. Teck also stated it is closely monitoring the evolving U.S. tariff landscape and actively managing its concentrate sales strategy. Refined zinc, lead, and specialty metals exported from Trail to the U.S. comply with the United States-Mexico-Canada Agreement (USMCA).