August Zinc Concentrate TC Negotiations Begin, Pricing in Multiple Regions Awaited Next Week [SMM Zinc Concentrate Weekly Review]

SMM July 24:

On a WoW basis, the average SMM Zn50 domestic weekly TC remained flat at -750 yuan/mt Zn, while the SMM Imported Zinc Concentrate Index fell $4.48/dmt WoW to -$94.63/dmt.

Domestic Ore Market. As month-end approaches, domestic smelters and mines have begun preliminary negotiations on August zinc concentrate TCs this week. Actual results in most regions are expected to be finalized next week, pending further TC pricing. It is learned that a zinc concentrate tender was held by a mine in North China this week, with specific results yet to be announced.

Imported Ore Market. The imported zinc concentrate market saw limited trading this week. Traders maintained offers at negative triple-digit levels, but the SHFE/LME price ratio has not improved. Some smelters remained reluctant to accept imported concentrates at negative triple digits, and overall trading in the import segment was subdued. According to market sources, a trader and a smelter recently traded imported zinc concentrates for Q4 delivery. The quotation period was M+2, and the concluded TC was around -$100/dmt. Additionally, some high-content concentrate offers were reported near -$120/dmt. Furthermore, a BVC zinc concentrate tender is underway, with an August shipment of 10 kt, awaiting further results.

EDM Resources announced that the Nova Scotia Department of Environment and Climate Change in Canada has issued a revised industrial approval for the Scotia mine restart project. The approval covers adjustments to mine planning, mineral processing facilities, site layout, waste rock and tailings management systems, and related environmental measures, consistent with the company’s updated pre-feasibility study. The Scotia mine plans to resume mining in 2027 after completing remaining permits, financing, and construction. Once operational, it is expected to become Nova Scotia’s only primary zinc producer and create approximately 150 direct jobs.

This week, SMM zinc concentrate inventories at major Chinese ports totaled 289,000 mt in physical content, down 10,900 mt in physical content WoW. Lianyungang port inventories accounted for the majority of the decline.