Tianjin Zinc: Zinc Prices Stay High, Downstream Players Mostly Remain on the Sidelines [SMM Midday Comment]

According to the National Bureau of Statistics, national sulfuric acid (100% basis) output in June 2026 reached approximately 7.923 million tons (vs. 8.365 million in May, 8.948 million in April, and 9.637 million in March, showing a month‑on‑month decline). The year‑on‑year change for the month was about ‑10%. For the first half of the year (January–June), cumulative production totaled roughly 52.223 million tons, a year‑on‑year decrease of about ‑0.1% (down from +1.9% in the January–May period, mainly due to the sharp 10% drop in June). Production remains heavily concentrated in smelting and phosphate‑fertilizer provinces such as Yunnan, Inner Mongolia, Guangxi, Anhui, Henan, and Shandong—with Yunnan ranking first at about 1.24 million tons per month. Smelter acid (by‑product from copper/zinc processing) forms the supply backbone, while acid for phosphate fertilizer drives the bulk of demand.

MMG reported zinc production of 106,000 tonnes for the first half of 2026, representing 48% of its full-year zinc guidance of 215,000-235,000 tonnes. Dugald River in Australia produced 87,000 tonnes of zinc, up 3% year on year, while maintaining recoveries above 90%. Rosebery produced 19,000 tonnes of zinc. Dugald River’s EBITDA rose 92% year on year to US$127 million, supported by higher zinc and by-product prices. At Rosebery, silver production increased 45% to 1.40 million oz and gold production rose 9% to 15,400 oz, resulting in C1 costs of negative US$2.23/lb after by-product credits. MMG maintained its 2026 zinc production guidance.

Alaska Silver announced that it plans to raise up to C$7.6 million (US$5.5 million) through a private investment in public equity financing, to expand its 2026 drill program at the Illinois Creek project in western Alaska from 6,000 m to 9,000 m. The proposed financing comprises up to 13.85 million units at C$0.55 per unit, with each unit consisting of one common share and one three-year warrant exercisable at C$0.75 per share. Closing is scheduled for August 14. The additional 3,000 m of drilling is intended to follow up targets at the Waterpump Creek silver-zinc-lead deposit, the Silver Sage discovery and other CRD targets across the district. Waterpump Creek hosts an inferred resource of 2.39 million tonnes grading 279 g/t silver, 11.25% zinc and 9.84% lead, containing 591 million lb of zinc and 518 million lb of lead. The company also plans to use the proceeds for metallurgical and technical work, baseline environmental studies and general corporate purposes; the financing and expanded drilling remain planned activities.