Zinc prices fell by 1% to 268.3, driven by rising Chinese refined zinc production and mixed demand signals. China’s refined zinc output increased by 4% YoY during January-July, while imports of zinc concentrates surged by 48%.
New yuan loans contracted for the first time in two decades, while total social financing grew 9%. The U.S. and China extended their tariff truce deadline by 90 days, but manufacturing activity in China continued to be contraction-prone.
Zinc supply dynamics exhibited tightening trends, with Chinese smelters under pressure to reduce output as their capacity outpaced demand. Mined output from Teck Resources’ Red Dog mine dropped 20% YoY in Q1, and the global zinc market shifted to a 44,100-ton deficit in May.
