[Zn Price] SHFE Zinc Prices Closed with Gains (Aug. 4, 2015)

[Tianjin Zinc: Demand Remains Weak, Market Transactions Thin] In Tianjin market, mainstream #0 zinc ingot traded at 24,520–24,660 yuan/mt, Zijin traded at 24,650–24,740 yuan/mt, #1 zinc ingot traded near 24,520–24,600 yuan/mt; Zijin reported a premium of 10–30 yuan/mt against the 2608 contract, Huzinc at 25,975 yuan/mt, #0 zinc ingot reported a discount of 50–120 yuan/mt against the 2608 contract, and Tianjin market reported a discount of 90 yuan/mt against Shanghai market.

Teck Resources reported on July 23 that Red Dog processed 1.13 million tonnes of ore in the second quarter, at average grades of 12.3% zinc and 3.8% lead, producing 112,000 tonnes of zinc and 21,900 tonnes of lead. Zinc output declined 18% year on year from 136,600 tonnes, mainly because of lower mill feed grades. Teck expects mining at Qanaiyaq to be completed this year, while Aqqaluk is expected to supply the mill until around 2031, with zinc output set to decline as grades diminish. Although first-half zinc production reached 218,200 tonnes, Teck expects full-year output to remain within guidance as grades continue to decline and the zinc and lead recovery circuits undergo a planned maintenance shutdown in the fourth quarter. Zinc guidance for 2026, 2027 and 2028 stands at 375,000–415,000 tonnes, 330,000–370,000 tonnes and 230,000–270,000 tonnes, respectively. The Red Dog Mine Life Extension PFS is progressing, supported by a substantially completed 12-mile access road, an awarded underground exploration-decline contract and C$200 million–C$250 million of 2026 budgeted spending.

SMM tracking data shows that on July 23, the sulfur vessel LADY ILEEN berthed at Zhanjiang Port for operations. The vessel had a shipment of 28,425 mt, departed from Bahrain on June 21, and was first discharged at Zhanjiang Port on July 23.