Here’s Why Hunan Zinc Ore Production is Restricted, SMM Reports

Southeast Asian SHG zinc ingot CIF premiums have continued to decline recently. According to SMM data, as of July 21, premiums in both the Malaysian and Indonesia markets stood at USD$100–128/mt, averaging USD$114/mt, down notably from early July. The decline was mainly driven by weak spot demand. Downstream buyers in Southeast Asia continue to rely primarily on annual contracts, resulting in limited spot restocking demand, fewer new inquiries and scarce concluded transactions. Sellers have therefore gradually lowered offers to facilitate spot sales. Meanwhile, some China-brand zinc ingots have entered the market at lower premiums, with recent transactions and workable levels mostly reported at USD$80–100/mt, placing pressure on mainstream offers. Premium differentials between brands remain. International mainstream and more widely accepted brands continue to command relatively firm offers, but higher-priced deals have become more difficult to conclude amid insufficient buying interest. In the near term, Southeast Asian zinc premiums are expected to remain under pressure as long-term contract coverage stays high and spot demand shows no clear improvement. However, actual transaction levels may continue to vary depending on brand, shipment timing and quotation period.

According to the latest customs statistics, China’s imports of die-cast zinc alloys reached 2,619.61 metric tons in June 2026, edging down 0.12% month-on-month (compared with 2,622.81 tons in May), a year-on-year drop of 43.38%. The total import volume for January–June stood at 15,878.56 metric tons, representing a cumulative year-on-year decline of 32.93%.

[Guangdong: Futures Maintain Fluctuating Trend, Spot Premiums Edge Up] Guangdong 0# zinc was mainly traded at 24,205~24,360 yuan/mt, mainstream brand quotations against the 2609 contract were -110~-90 yuan/mt and against Shanghai spot cargo were -105 yuan/mt, and the Shanghai-Guangdong price spread widened...