More offers for imported zinc ore emerge, with TCs continuing to rise [SMM Weekly Review of Zinc Concentrates]

SMM News on June 6:

During the week, zinc concentrate TCs increased MoM. The average weekly SMM Zn50 domestic TC price remained flat MoM at 3,600 yuan/mt (metal content). The SMM Imported Zinc Concentrate Index rose by US$3.85/dmt MoM to US$50.35/dmt.

In the spot ore market, domestic smelters in multiple regions finalized their June TCs this week. Processing fees in Henan continued to increase, while other smelters maintained the contracts signed earlier, with stable TCs. Additionally, due to sufficient raw material levels in some domestic regions, zinc concentrate TCs even reached 4,000 yuan/mt (metal content) in June. Regarding imported zinc ore, offers increased this week, with some traders quoting Bisha zinc concentrate TCs at around US$40/dmt. Recently, domestic smelters and traders concluded deals for South American zinc ore arriving in Q3 containers, with TCs exceeding US$60. Imported zinc concentrate TCs continued to rise.

On June 4, 2025, Canadian miner Hudbay Minerals announced that, due to the ongoing wildfires spreading in northern Manitoba, it had temporarily suspended operations at its Snow Lake mine site and halted exploration activities at Flin Flon and Snow Lake in accordance with evacuation alerts issued by local authorities, until the fire situation stabilized. The company also activated emergency plans to ensure the safety of employees and communities. In a May 29 announcement, Hudbay had stated that it would maintain reduced operations at the Snow Lake mine. However, as the fires spread, the town of Snow Lake received an evacuation alert on June 3. Hudbay noted that its facilities in Snow Lake and Flin Flon were well-equipped with good risk control, and the direct threat of wildfires to its infrastructure was currently low. The company emphasized that despite the temporary production suspension caused by the wildfires, it would maintain its 2025 full-year operational guidance unchanged due to the strong performance of Snow Lake operations year-to-date. For 2025, the company provided a guided production output of 21,000-27,000 mt (metal content) of zinc concentrates for the mine site.

This week, SMM zinc concentrate inventory at China's main ports totaled 345,500 mt, increasing by 29,500 mt WoW, with a slight increase in port zinc ore inventory.

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