Zinc Concentrate TCs for 2025 Hit Record Low at $80/dmt

On May 13, 2026, Nexa Resources announced that an accident occurred in the morning at the Cajamarquilla zinc smelter in Peru, triggering a fire. The fire has been brought under control, and operations have been suspended. It was reported that no fatalities resulted from the incident. Some infrastructure at the smelter sustained damage. Based on currently available information, the company expects the incident will not have a significant impact. Last night, LME zinc prices surged to $3,582.5/mt at one point, hitting a new high since August 2022. According to SMM, Cajamarquilla is the largest zinc smelter in Latin America, with refined zinc production reaching 345,300 mt in 2025, the highest output since commissioning. The actual impact going forward still requires further monitoring.

[SMM Zinc Morning Comment] Overnight, the most-traded SHFE zinc 2606 contract opened at 24,830 yuan/mt. At the beginning of the session, bulls increased open interest, and SHFE zinc fluctuated upward. Toward the end of the session, after touching a high of 24,970 yuan/mt, upward momentum weakened and the center shifted lower with range-bound trading. It finally closed up at 24,915 yuan/mt, gaining 85 yuan/mt or 0.34%. Trading volume fell to 50,281 lots, and open interest increased by 132 lots to 91,706 lots.