Smelters Remain on the Sidelines; Processing Fees Raised in Some Regions During the Week [SMM Zinc Concentrates Weekly Review]

SMM March 14 News:

Weekly zinc concentrate TCs increased. The weekly average domestic TC for SMM Zn50 rose by 100 yuan/mt (metal content) WoW to 3,250 yuan/mt (metal content), while the weekly average imported TC for SMM Zn50 increased by $10/dmt WoW to $35/dmt.

In the spot market for ores, domestic smelters showed a cautious sentiment during the week, with overall raw material procurement volumes remaining relatively limited. For imported ores, transactions remained scarce during the week, but some traders raised quotes for imported zinc ore to facilitate sales, leading to an increase in imported zinc concentrate TCs this week. Recently, some smelters have received deliveries of previously ordered imported zinc ore, continuously replenishing their zinc ore inventories. With raw material supplies being ample, domestic smelters stood firm on zinc concentrate TCs. Additionally, port inventories remained at high levels, and zinc ore supply was relatively sufficient, driving further increases in zinc concentrate TCs in some domestic regions this week.

During the week, Nyrstar announced that its Hobart zinc smelter in Australia would reduce production by approximately 25% starting from April 2025 until further notice. This decision was made following a comprehensive and in-depth assessment, primarily considering the deteriorating market environment and the ongoing financial losses faced by Nyrstar's Australian operations. Currently, the Hobart smelter has an annual production capacity of approximately 250,000 mt of zinc ingots.

This week, SMM zinc concentrate inventory at China's main ports totaled 340,500 mt, up 28,300 mt WoW, indicating an increase in port zinc ore inventories.

》Subscribe to Access SMM Historical Spot Metal Prices