SHFE Zinc Prices Rise, But Downstream Demand Weak Amid Seasonal Slowdown

Vedanta Limited released its first quarterly results following the effective May 1, 2026 demerger on July 30. Its continuing operations—primarily zinc, copper, ferrochrome and related businesses—reported revenue of ₹23,456 crore for the quarter ended June 30, up 51% year on year. EBITDA reached ₹8,469 crore, up 98%, and profit after tax rose 152% to ₹5,294 crore, both record highs for the continuing business. Quarterly EBITDA margin was about 57%, up 985 basis points year on year, while return on capital employed reached 29%. Cash and cash equivalents stood at ₹19,992 crore against net debt of ₹8,299 crore, lowering net debt-to-EBITDA to 0.3x. The demerger unlocked more than ₹71,000 crore of combined market capitalization during the quarter. The supplied information did not disclose zinc-specific production, costs, concentrate supply or sales; these remain key items to monitor.

Ivanhoe Mines released its second-quarter 2026 results on July 30. Its Kipushi mine in the DRC produced a record 70,177 tonnes of zinc during the quarter at a cash cost of $0.90/lb. The concentrator processed a record 200,774 tonnes of ore, averaging 38.7% zinc, while recoveries averaged nearly 92%. The company maintained Kipushi’s 2026 zinc production guidance of 240,000–290,000 tonnes and expects the mine to rank among the world’s three largest zinc mines this year. At Kamoa-Kakula, quarterly copper production reached 64,328 tonnes, with inventory build and temporary constraints affecting performance; management plans to destock inventory in the second half. Further attention should be paid to Kipushi’s second-half delivery against guidance and cost trends.