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DAILY:China zinc supply cuts support prices while downstream demand remains subdued

Source: Mysteel May 28, 2026 09:01
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Zinc Demand Price Supply

On May 27th, downstream procurement remained mainly driven by essential restocking demand, with overall market trading sentiment relatively weak. On the supply side, production cuts provided support to zinc prices; however, downstream consumption remained subdued. TCs held steady compared with the previous trading day, while both domestic and imported zinc concentrate prices edged lower.

 

Overseas zinc concentrate markets remained tight. The significant import losses sharply curbed domestic buyers' willingness to purchase imported material. Some major domestic smelters continued to secure feedstock through long-term import contracts, partially offsetting shortfalls in domestic mine supply. However, smaller and medium-sized smelters faced acute raw material shortages, further tightening the domestic spot concentrate market.

 

Although northern mines resumed operations seasonally, the overall production increase was insufficient to offset the broader supply shortage. Coupled with persistently firm sulfuric acid prices, tightness on the mining side and strong smelting demand may drive treatment charges steadily lower.

 

zinc

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