SHFE Zinc to Face Selling Pressure (2016-5-24)

[ Tianjin Zinc: Zinc Prices Consolidate, Downstream Engages in Small-Scale Pricing ] In Tianjin market, #0 zinc ingot mainstream transactions were at 25,170~25,350 yuan/mt, Zijin transactions were at 25,340~25,430 yuan/mt, #1 zinc ingot transactions were around 25,100~25,290 yuan/mt. Zijin was quoted at a premium of around 50 yuan/mt against the 2609 contract, Huzin was quoted at 26,595 yuan/mt, #0 zinc ingot was quoted at a discount of 30~120 yuan/mt against the 2609 contract, and Tianjin market was quoted at a discount of around 65 yuan/mt against Shanghai market.

【SMM Flash】According to an SMM survey, as of this Thursday (August 20), SMM seven-region zinc ingot inventory totaled 270,400 mt, up 6,100 mt from August 13 and 400 mt from August 17, indicating an increase in China's inventory.

According to South Korean regulatory filings, Korea Zinc reported consolidated Q2 operating profit of ₩587 billion, versus ₩1.5 billion for Young Poong. Their respective H1 cumulative operating profits were ₩1.33 trillion and ₩44.8 billion. Korea Zinc’s Onsan smelter maintained 100% utilization in H1, while Young Poong’s zinc-focused Seokpo smelter utilization declined from 57.23% in Q1 to 51.7% in Q2, though it remained above the 45.95% recorded for full-year 2025. Young Poong’s Q2 revenue rose 42.2% year on year to ₩853.2 billion and operating profit turned positive from a ₩94.1 billion loss a year earlier but fell sharply from ₩43.3 billion in Q1. Environmental uncertainty remains material: financial regulators imposed a fine of about ₩20.4 billion over the accounting treatment of soil and groundwater remediation costs. The climate, energy and environment minister said a suspension could be imposed if continued operation at the current site is determined to threaten the Nakdong River drinking-water source; no shutdown has been ordered.