Supply Disruptions Continued, Imported TCs Continued to Decline [SMM Zinc Concentrates Weekly Review]

SMM News, March 13:

Weekly data showed that the average weekly TC for SMM Zn50 domestic ore held steady at 1,550 yuan/mt in metal content, while the SMM imported zinc concentrates index fell $4.13/dmt WoW to $11.25/dmt.

China domestic ore market. March TC negotiations had been completed, and domestic smelters mainly executed signed contracts this week, with limited new procurement volume. TCs in many parts of China remained stable. In addition, the March zinc concentrates tender results from a mine in North China were released during the week, with the winning bid price at around 2,300 yuan/mt in metal content, self pick-up (including 20/80 profit sharing), with metal-rich content not separately priced.

Imported ore market. Recent disruptions in Iran and Australia still persisted, and market concerns over zinc concentrates supply continued. This week, imported ore traders continued to lower spot quotation. It was learned that some recent bulk cargo shipments of metal-rich zinc concentrates were quoted at negative prices, while containerized metal-rich ore quotations were at single-digit levels.

According to reports, the beneficiation plant of the Zhugongtang lead-zinc mine under Hezhang Dingshengxin Mining Development Co., Ltd. is expected to officially enter trial production in July this year, marking a key step for this super-large lead-zinc mine project toward scaled and standardized production. According to the introduction, construction of the beneficiation plant had entered the final sprint stage, with a clear timeline: standalone commissioning conditions in March, wet integrated commissioning and testing in April-May, feed-in trial run in June, and trial production in July. The project’s total investment exceeds 3 billion yuan, with annual mining and beneficiation capacity of 1.98 million mt. After reaching stable production, it is expected to generate annual revenue of over 3.5 billion yuan and create employment for more than 1,000 people, providing support for strengthening and supplementing the non-ferrous metals industry chain in south-west China.

This week, SMM zinc concentrates inventory at China’s main ports totaled 367,000 mt in physical content, up 18,000 mt in physical content WoW, with Lianyungang and Fangchenggang contributing most of the increase.