Zinc Futures (SHFE)

Luoping Zinc & Electricity has disclosed its earnings forecast, projecting a net loss attributable to shareholders of 60 to 80 million yuan for the first half of 2026, compared with a loss of 92.1902 million yuan in the same period last year. The net loss after deducting non-recurring items is expected to be 59 to 79 million yuan, versus a loss of 65.4627 million yuan a year earlier. Basic loss per share is estimated at 0.19 to 0.25 yuan. The company stated that increased sales of its main products, zinc ingots and zinc alloys, along with higher selling prices for by-products, drove year-on-year revenue growth. However, rising raw material procurement costs pushed up operating costs, and a significant decline in zinc metal processing fees led to a year-on-year increase in inventory impairment provisions. On the other hand, unit processing costs decreased due to refined management, and non-operating expenses also fell year-on-year, resulting in a narrower loss compared with the same period last year.

Nexa Resources has kept its 2026 sales guidance intact despite a fire at its Cajamarquilla smelter in Peru on May 13 that caused a temporary suspension and an estimated lost production of 7,000 tons of refined zinc, representing 2% of annual production. The company expects to recover the lost output in the second half of 2026 and still projects consolidated zinc production to increase 6% at the mid-point from the 2025 reported level, driven by higher output at the Aripuanã, Atacocha and Vazante mines, partially offset by lower volumes at Cerro Lindo and El Porvenir. Nexa Resources also anticipates zinc production to rise 8% in 2027 from the 2026 reported level, while 2028 production is expected to be flat as gains from Atacocha, Aripuanã and Vazante are offset by declines at Cerro Lindo and El Porvenir. Consolidated conversion costs for 2026 are forecast to remain flat year over year at 31 to 34 cents per pound, with higher output at Brazilian smelters negated by lower production at Cajamarquilla. The stock has surged 156.3% over the past year, and the Zacks Consensus Estimate for 2026 earnings is $2.82 per share, implying a 231% year-over-year increase.

Scotiabank raised its price target on Nexa Resources to $14.50 from $14 on June 15 while keeping a Sector Perform rating, citing a tighter copper market and insufficient medium-term supply growth. Separately, Nexa provided an update on the gradual resumption of operations at its Cajamarquilla smelter in Peru following a May 13 incident, estimating a production impact of approximately 7,000 tonnes of refined zinc in the second quarter of 2026, which represents about 2% of annual production and is expected to be recovered in the second half of the year. The company's 2026 sales guidance remains unchanged.

Southern Copper’s zinc production surged 36% year-over-year in 2025, driven by the new Buenavista zinc concentrator, sharply reducing net cash costs for copper to just $0.58 per pound. Management attributed the cost drop mainly to a $0.34 increase in by-product revenue credits, with zinc as the primary driver. The company deliberately prioritized zinc over copper at Buenavista after finding high-grade ore, a strategy that helps insulate profitability against an expected 4.7% decline in copper production next year due to lower ore grades at Peruvian operations.