Smelters purchased less raw material, weekly zinc concentrate TCs remained stable [SMM Zinc Concentrates Weekly Review]

SMM March 21 News:

Weekly zinc concentrate TCs remained stable. The SMM Zn50 domestic weekly TC average price was flat WoW at 3,250 yuan/mt (metal content), and the SMM Zn50 imported weekly TC average price was also flat WoW at $35/dmt.

In the spot ore market, smelters continued to observe this week with limited raw material purchasing activities, and zinc concentrate TCs remained steady. For imported ore, the import window for zinc ore remained closed during the week, and traders showed low willingness to quote, resulting in sluggish overall spot transactions. With continuous arrivals of imported zinc ore, smelters maintained high levels of raw materials, and domestic zinc ore production gradually resumed, leading to an expected increase in zinc ore supply MoM. Smelters are expected to stand firm on quotes for future TCs. Domestic smelters may start negotiating April zinc concentrate TCs next week, and SMM will continue to monitor subsequent changes in TCs.

On March 17, Boliden announced that its Odda smelter in Norway officially opened, with its annual zinc capacity increasing from 200,000 mt to 350,000 mt, and the overall progress is largely in line with previous expectations. Testing and trial operations of the new facility will be carried out gradually in Q2 2025, with full production expected in H2 2025.

According to the latest customs data, China's imported zinc concentrates in February 2025 were 461,400 mt (physical tonnage), up 16.28% (64,600 mt) MoM and up 83.73% YoY. The cumulative imports of zinc concentrates for January-February were 858,300 mt (physical tonnage), up 32.64% YoY.

This week, SMM zinc concentrate inventories at major Chinese ports totaled 341,400 mt, up 900 mt WoW, with port zinc ore inventories remaining at a high level.