China turns on the export taps as LME zinc squeeze grinds on
GLD•China exported 40,668 metric tons of refined zinc in August, its second-highest monthly total in almost 20 years, and was a net exporter by 4,388 tons in the first eight months. Shipments have added to LME inventories and eased—but not ended—market tightness.
1. Exports lift inventories
China’s zinc exports rose to 40,668 metric tons in August as imports slowed, making the country a net exporter by 4,388 tons in the first eight months of the year. The article says China is on course to become a net annual exporter for the first time since 2022.
2. LME supply increases
LME warehouses in Hong Kong received 35,000 tons of zinc from mid-August, while Singapore received 21,250 tons and Taiwan’s Kaohsiung port 16,725 tons. LME-registered inventories rose from 88,000 tons in mid-August to 126,975 tons, and the three-month zinc price fell from $4,065 per ton in early September to $3,715.
3. Western smelters face pressure
Western refined zinc output contracted 3.4% year on year in the first half of 2026. Nyrstar is reviewing its Budel smelter in the Netherlands; CEO Guido Janssen said it loses money every year and conditions for next year look particularly difficult.
