China exported 40,668 metric tons of refined zinc in August, the second-highest monthly total in almost 20 years, and was a net exporter by 4,388 tons in the first eight months. Shipments to LME warehouses have helped ease the squeeze, but cash zinc still commands a $60-per-ton premium over three-month delivery.
China’s zinc exports surged as imports slowed, opening an arbitrage window with domestic prices while the LME market remained tight. LME warehouses in Hong Kong have received 35,000 tons since mid-August, while Singapore received 21,250 tons and Taiwan’s Kaohsiung port 16,725 tons; together, the three locations accounted for 80% of China’s August outbound shipments. LME-registered inventories rose from 88,000 tons in mid-August to 126,975 tons.
China is on course to become a net annual zinc exporter for the first time since 2022, while Western refined zinc output fell 3.4% year on year in the first half of 2026. Nyrstar is reviewing operations at its Budel smelter in the Netherlands; CEO Guido Janssen said the plant “is losing money every year, and the conditions for next year look particularly difficult.”
