China begins negotiations on July zinc concentrate TCs, awaiting results next week [SMM Zinc Concentrate Weekly Review]

SMM June 26 news:

On a weekly basis, the average domestic Zn50 weekly TC remained flat WoW at -200 yuan/mt Zn, and the SMM Imported Zinc Concentrate Index (weekly) fell $5.74/dmt WoW to -$77.5/dmt.

Domestic Ore Market. At the end of June, domestic smelters and mines started negotiations on July zinc concentrate TCs this week. The overall negotiation atmosphere was tense, and the pricing for July TCs awaits the outcome of next week's talks. According to market sources, the zinc concentrate tender results from a mine in North China were released last week. The EXW tender price from the mine was approximately 750 yuan/mt Zn (including a 20:80 sharing mechanism), without pricing for contained metals. In addition, another zinc concentrate tender by a mine in south-west China was held this week, with bids expected to close next Monday; the market awaits the subsequent tender results.

Imported Ore Market. Recently, transportation disruptions in Bolivia have yet to ease. Import ore spot cargo offers were relatively limited this week, but traders showed strong willingness to lower their asking prices. The market heard that CIF offers for Gamsberg zinc concentrates dropped to -$100/dmt, and other standard concentrate offers were also below -$100/dmt. However, with the SHFE/LME price ratio staying persistently low, smelters were less willing to accept TCs in the negative triple-digit range, and no actual transactions at negative triple-digit TCs were heard in the market. In addition, the results of the recent Volcan mine tender were released, with the winning bid price heard at around -$140 to -$150/dmt for shipment in Q4 and Q1 next year. The market awaits further tender results for other concentrates.

On June 23, 2026, the People's Government of Hezhang County and Guizhou Dingshengxin Zinc-Germanium New Materials Co., Ltd. officially signed the "Investment Contract for the Guizhou Dingshengxin Zinc-Germanium New Materials Green Manufacturing Project." The project has a reported total investment of 5.5 billion yuan, designed to produce 220,000 mt of zinc ingot per year (including 100,000 mt of high-end new zinc alloy materials for die-casting and galvanizing), 80,000 mt of lead ingot, with simultaneous recovery of germanium ingot, silver ingot, refined cadmium, and other rare and precious metals, and a supporting sulphuric acid production system (with an annual output of approximately 580,000 mt of sulphuric acid).

This week, SMM zinc concentrate inventories at main ports in China totaled 289,000 mt in physical content, up 9,000 mt in physical content WoW, with Qinzhou Port's inventory contributing the majority of the increase.