Stockpiling erodes zinc social inventories

On June 4th, Ivanhoe Mines announced that the Kipushi Mine produced a record 25,677 tonnes of zinc in concentrate in May, up 12% from the previous record set in January 2026. During the month, Kipushi mined and hoisted 85,811 tonnes of ore. As of the end of May, surface high-grade run-of-mine stockpiles stood at approximately 12,000 tonnes, grading around 37% zinc, while lower-grade stockpiles totalled approximately 254,000 tonnes at an average grade of around 22% zinc. Kipushi’s year-to-date zinc production reached approximately 110,000 tonnes, putting the mine on track to meet its 2026 production guidance of 240,000–290,000 tonnes and rank among the world’s four largest zinc mines. Construction of Kipushi’s second tailings storage facility was more than 90% complete, with the first deposition of tailings expected in October 2026.

[Bulls Take Profits and Exit, SHFE Zinc Declines] The most-traded SHFE zinc 2607 contract opened at 25,055 yuan/mt. At the beginning of the session, bulls reduced their open interest, and SHFE zinc fluctuated downward throughout the day, hitting a low of 24,770 yuan/mt near the close, ultimately settling down at 24,800 yuan/mt, a decline of 350 yuan/mt or 1.39%. Trading volume fell to 134,000 lots, and open interest decreased by 10,337 lots to 101,000 lots.

[Zinc Concentrate Production Information] According to SMM, a mine in northeastern China has remained shut down this year due to certain reasons. The mine currently plans to gradually resume production in July, and SMM will continue to track its subsequent performance.