Pricing System Upgraded Again! SMM Adds Separate Payable Indicators for Copper, Zinc, and Gold in Lead Concentrates [SMM Analysis]

SMM News on August 28:

        Lead concentrates are a typical polymetallic associated ore. In addition to the primary metal lead, they are commonly associated with valuable elements such as silver, gold, zinc, and copper. SMM has quoted the payable indicator for silver in lead concentrates for many years. Based on the industry chain’s long-term demand for greater pricing transparency of associated metals, SMM has officially launched the payable indicators for copper, zinc, and gold contained in lead concentrates, further improving the comprehensive pricing system for lead concentrates and providing mines, smelters, and traders with more comprehensive and more accurate by-product pricing references.

I. Payable Indicator Details:

1. Payable indicator (weekly) for gold (AU) contained in lead concentrates

AU ≥ 1 g/dmt

2. Payable indicator (weekly) for zinc (ZN) contained in lead concentrates

5% ≤ ZN < 8%  

8% ≤ ZN < 10%  

10% ≤ ZN < 12%  

ZN ≥ 12%

3. Payable indicator (weekly) for copper (CU) contained in lead concentrates

1% ≤ CU < 2%  

2% ≤ CU < 3%  

3% ≤ CU < 5%

II. Why Are Payable Indicators for Other Metals in Lead Concentrates Needed?

1. By-product revenue share increased significantly, and premium deals for highly associated ores became the market mainstream

In H1 2026, the comprehensive profit of primary lead smelting was 1,000–2,500 yuan/mt, with by-product revenues from silver, copper, zinc, sulphuric acid, and others contributing the bulk of profits. Against the backdrop of TC continuing to decline (domestic Pb50 concentrates TC had fallen to 150 yuan/mt Pb, and imported TC had dropped to -$170/dmt), transparency in by-product pricing directly determined smelters’ cost calculations and bidding strategies.

2. The pricing game between mines and smelters lacked a public benchmark

For a long time, pricing for associated copper, zinc, gold, and silver in lead concentrates mainly relied on one-on-one negotiations between the two parties, lacking public market references. The release of SMM’s payable indicators for gold, zinc, copper, and silver in lead concentrates will provide independent third-party references for long-term contract negotiations, spot transactions, and asset valuation.

III. Practical Value to the Industry Chain

1. Mine side: making by-product value explicit

• Miners can quickly estimate the potential value of associated metals based on public indicators;
• break free from the limitation of benchmarking solely against a single TC in TC negotiations by incorporating comprehensive by-product returns;
• and achieve more accurate pricing for resource evaluation and mining rights transactions.

2. Smelter Side: More Refined Cost Estimation

• Differentiated quotations in procurement decisions based on differences in ore grade;
• More accurate forecasts of by-product revenues, and primary lead integrated profit estimates closer to actual conditions
• Against the backdrop of a sharp decline in TC and smelting losses, reassess the premium potential for associated ores

3. Trade and Finance Side: Greater Transparency of Pricing Benchmarks

• A sound basis for imported lead concentrates assessment and long-term contract negotiations;
• Pricing of futures derivatives can refer to the SMM payable indicator;
• Price transmission pathways for silver, copper, zinc, and gold are more transparent.

The SMM lead concentrates pricing system has achievedfull coverage of the four major associated metals—silver + copper + zinc + gold—providing the market with a complete by-product pricing reference. The transparency, standardization, and continuity of the payable indicator are not only hallmarks of a mature market, but also essential infrastructure for high-quality industry development. SMM is willing to work hand in hand with all parties across the industry chain to jointly promote the evolution of China’s lead concentrates pricing mechanism toward greater professionalism, efficiency, and fairness.

IV. Data Access

You may log in to SMM (website: ) and the SMM Data Terminal (website: ), and view the relevant prices under the Lead–Lead Concentrates category in the Prices section. This price point is updated weekly (before 17:00 every Friday; brought forward in the event of public holidays) to ensure you obtain the latest market price information.

Thank you for your support and trust in SMM. We look forward to your feedback and suggestions. If you have any questions or need further assistance, please feel free to contact the lead and zinc analyst Han Zhen 021-51666876.

Data Source Statement: Except for publicly available information, all other data are processed by SMM based on publicly available information and market communication, relying on SMM’s internal database models, and are for reference only and do not constitute decision-making advice.