Rising Zinc Prices Push Up Raw Material Costs for Zinc Oxide Producers, Triggering Price Hikes

Central Asia Metals (CAML) reported zinc-in-concentrate production of 9,094 tonnes at its Sasa mine in H1 2026, up 5% year on year, while lead-in-concentrate output increased 6% to 13,312 tonnes. The company said the operational improvement programme launched in H2 2025 had begun to deliver results. CAML maintained its 2026 production guidance of 18,000–20,000 tonnes of zinc in concentrate and 26,000–28,000 tonnes of lead in concentrate. Supported by higher production and metal prices, group revenue rose 46% year on year to $145.5 million, while EBITDA increased 89% to $75.5 million.

【SMM Flash】Zinc prices trended higher during the week, weighing on downstream order performance. End‑users are wary of high prices and mostly purchase only for rigid needs, putting sales pressure on die‑cast zinc alloy producers. Against the backdrop of elevated raw‑material costs, the market is concerned about the actual delivery strength of the traditional “Golden September” peak‑season consumption.

【SMM Flash 】Affected by the typhoon disturbance, Ningbo and Wenzhou in Zhejiang upgraded their typhoon‑prevention emergency response to Level‑Ⅰ on the evening of the 27th. Some local die‑cast zinc alloy enterprises suspended production as a precaution. Dragged by this factor, the operating rate of die‑cast zinc alloy is expected to decline and fluctuate around 44.5% next week.