SMM Launches 40% Imported Ore Zinc Smelting Daily Profit Index by Province [SMM Analysis]

SMM, June 30 :

In May 2026, SMM introduced daily profit models for domestic ore across eight major zinc smelting regions—Inner Mongolia, Henan, Gansu, Hunan, Guangxi, Yunnan, Shaanxi, and Sichuan—to serve as a market reference. Considering the significant differences in raw material structures among zinc smelters in China, customs data show that the proportion of imported ore has been rising year by year, reaching approximately 40% in recent years. For smelters utilizing a mix of imported ore, the cost side is affected by both domestic ore TCs and imported ore TCs. Additionally, the delivered cost of imported ore must factor in exchange rate fluctuations, international ocean freight rates, port charges, and other elements, introducing more variables that influence profit structure fluctuations. As of June 26, 2026, SMM’s domestic ore TC stood at -200 yuan/mt in metal content, and the imported ore TC at -$77.5/dmt. Against a market backdrop of persistently negative imported ore TCs and a deeply closed import window, smelters operating with this ore mix generally recorded wider losses compared to those using purely domestic ore. Therefore, independently tracking smelting profits under a 40% imported ore mix helps more accurately identify the profitability and production flexibility of enterprises with different raw material structures, providing detailed data support for industry chain analysis.

To further enhance the zinc industry chain data service system, Shanghai Metals Market (SMM) launched a daily smelter profit model (40% imported ore) in June 2026. The data, backdated to January 2025 and updated every business day, covers seven major zinc smelting regions: Inner Mongolia, Henan, Gansu, Hunan, Guangxi, Yunnan, and Sichuan. Building on existing profit indicators, this data upgrade incorporates a 40% imported ore mix and outputs two complete profit models—profit including sulphuric acid and profit including sulphuric acid and minor metals. The data supports independent provincial inquiries, facilitating cross-regional comparisons of smelter profit trends.

Data Applications for the New Smelter Profit Model (40% Imported Ore):

1. Track profit fluctuation trends for smelters using imported ore mixes, and assess demand elasticity and purchase willingness for imported ore. 2. Horizontally compare profit differences across production areas to identify regional spot arbitrage opportunities.
3. Combine the trends of imported ore TCs and domestic ore TCs to assist in predicting the adjustment direction of the blending ratio of imported and domestic ores.
4. Support industry research and market trend analysis.

Data Viewing:
You can log in to the SMM Data Terminal (URL: https://data-pro.smm.cn/terminal) and view the relevant data under the Zinc - Refined Zinc category in the Cost and Profit section. Data is updated on working days.
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