SHFE Zinc Prices Rise, But Downstream Demand Weak Amid Seasonal Slowdown

[Imported Zinc Concentrate Market] This week, traders maintained import zinc concentrate offers at depressed levels, with most quotations remaining in negative triple-digit territory. However, the continued decline in both domestic and international TCs further squeezed smelter margins, leaving Chinese smelters reluctant to accept imported concentrate priced at negative triple-digit TCs. Consequently, trading activity in the imported zinc concentrate market remained subdued throughout the week.

[Domestic Zinc Concentrate Market]This week, domestic zinc concentrate treatment charges (TCs) across multiple regions in China were gradually finalized, with July TCs continuing to decline from June levels. The primary driver behind the latest reduction was the persistently weak domestic-to-overseas price ratio, which pushed losses on imported zinc concentrate to nearly RMB 2,000/mt once again. As a result, Chinese smelters continued to prioritize purchases of domestic zinc concentrate in July, keeping the domestic concentrate market in a tight supply-demand balance.

Per SMM statistics, the average operating rate of domestic die-casting zinc alloy manufacturers from January to June 2026 dropped by 6.25 percentage points year-on-year versus the same period in 2025, marking an evident slowdown in overall production activity.