In recent years, zinc prices have fluctuated largely around the supply-demand imbalance between mining and smelting. With a significant increase in zinc concentrate supply expected for this year, prices may face downward pressure as we expected at the beginning of this year. This is the second report of two, which reviews Q1 production data from major overseas zinc mines from the Asia, Oceania and the Americas, and provides updated forecasts for full-year output.

In recent years, zinc prices have fluctuated largely around the supply-demand imbalance between mining and smelting. With a significant increase in zinc concentrate supply expected for this year, prices may face downward pressure as we expected at the beginning of this year. This is the first report of two, which reviews Q1 production data from major overseas zinc mines from the EMEA region, which covers Europe, Middle East and Africa.

[TC Continues to Rebound, SHFE Zinc Price Center Moves Downward] The most-traded SHFE zinc 2507 contract opened at 22,320 yuan/mt. Early in the session, bulls reduced their positions, causing SHFE zinc to quickly decline and oscillate below the daily average line. During this period, it dipped to a low of 21,500 yuan/mt. The contract eventually closed down at 22,225 yuan/mt, a drop of 270 yuan/mt or 1.02%. Trading volume decreased to 182,000 lots, while open interest fell by 2,766 lots to 117,000 lots.

[Arrivals remain low in some regions, and social inventory continues to decline] According to communication with SMM, as of Thursday (May 29), the total zinc ingot inventory across the seven regions monitored by SMM was 75,000 mt, a decrease of 5,400 mt from May 22 and a decrease of 3,800 mt from May 26. Domestic inventory recorded a decline...

[Domestic Smelters Extend Maintenance Period, Zinc Prices Rise During the Week] At the beginning of the week, LME zinc market was closed for one day; subsequently, due to the lingering uncertainty surrounding Trump's tariff policies and the increasing likelihood of a delayed interest rate cut by the US Fed, LME zinc prices declined; then, as the US Conference Board's Consumer Confidence Index for May exceeded expectations and the US dollar index rose, while overseas inventories continued to decline, LME zinc maintained a fluctuating trend...