Zinc Price to Hold Strong Reaping Fundamental Benefits, SMM Foresees

In H1 2026, China’s sulphur market experienced a full transmission chain of “import collapse – output pressure – export stagnation”. Key figures: Production: National sulphuric acid output in January–May fell 1.6% y‑o‑y, with significant declines in traditional phosphate fertiliser producing provinces like Hubei, Guizhou, and Yunnan, while Anhui and other smelter‑acid‑concentrated regions saw growth. Exports: Sulphuric acid exports practically halted in June......

In H1 2026, China's sulphur market experienced a full transmission chain of "import crash—production under pressure—export stagnation," with key data as follows: Imports: Natural sulphur imports fell from 497,200 mt in January to 147,000 mt in June, and on a combined basis of natural sulphur and refined sulphur, they were down approximately 57.7% YoY, with the share of Middle Eastern sources dropping from nearly 40% to 5%; Production: From January to May, national sulphuric acid production fell 1.6% YoY, with significant declines in Hubei, Guizhou, Yunnan and other traditional phosphate fertiliser production areas, while Anhui and other areas with concentrated smelting acid production grew against the trend; Exports: Sulphuric acid exports nearly fell to zero in June, with approximately 100,000-150,000 mt of export resources per month flowing back to the domestic market; Prices: Sulphur prices soared from 4,180 yuan/mt at the start of the year to a peak of 10,353.5 yuan/mt in June, while the copper smelting acid index rose by about 92% from the beginning of the year.

According to customs statistics, China witnessed a notable divergent pattern of rising exports and falling imports for die-casting zinc alloy in the first half of 2026. Exports registered exceptional strength, while imports continued to shrink.