Zinc May Experience Technical Correction (2017-6-27)

Since 10 July, SMM Chinese sulfuric acid price index from Copper smelters has declined for 11 consecutive weeks on a weekly basis. This weekend, sulphuric acid prices were further reduced in some regions, with the ex-works price of 98% smelting acid falling below 1,000 yuan/mt. However, demand from the fertiliser industry has yet to show any clear improvement, and there are no signs that exports of sulphuric acid and phosphate fertiliser can be restarted, leaving the market dominated by a strong wait-and-see sentiment.

NBS data shows that China's sulphuric acid (100% equivalent) production in August was 7.984 million mt, down 308,000 mt from 7.676 million mt in July, a YoY decrease of 15.5%. The cumulative production of sulphuric acid (100% equivalent) in 2026 was 68.141 million mt, a cumulative YoY decrease of 4.6%. The top five regions by production were Yunnan province (1.1927 million mt), Anhui province (698,700 mt), Shandong province (680,600 mt), Henan province (570,200 mt), and Guangxi Zhuang Autonomous Region (568,800 mt). For detailed data, please refer to SMM Data.

[Refined Zinc Exports Surge in August, Will the Trend Continue in September?] According to the latest customs data, China's refined zinc imports in August 2026 were 2,300 mt, down 2,700 mt or 53.14% MoM and down 90.68% YoY. Cumulative refined zinc imports in January-August were 67,100 mt, down 71.51% YoY. China's refined zinc exports in August 2026 were 40,600 mt, up 31,400 mt or 340.36% MoM and up 12,976.53% YoY. Cumulative refined zinc exports in January-August were 70,700 mt...