SMM Adds Lead Concentrates Copper, Zinc, Gold Sub-Item Payable Indicators [SMM Analysis]

SMM August 28 news:

Lead concentrates are typical polymetallic ores. In addition to the main 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 long-term demand from the industry chain for transparent pricing of associated metals, SMM officially launched the payable indicators for copper, zinc, and gold in lead concentrates, further improving the comprehensive pricing system for lead concentrates and providing mines, smelters, and traders with more comprehensive and accurate pricing references for by-products.

I. Details of Payable Indicators:

1. Lead Concentrate Gold (AU) Payable Indicator (Weekly)

AU ≥ 1 gram/dmt

2. Lead Concentrate Zinc (ZN) Payable Indicator (Weekly)

5% ≤ ZN < 8%

8% ≤ ZN < 10%

10% ≤ ZN < 12%

ZN ≥ 12%

3. Lead Concentrate Copper (CU) Payable Indicator (Weekly)

1% ≤ CU < 2%

2% ≤ CU < 3%

3% ≤ CU < 5%

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

1. The share of by-product revenue increased significantly, and high-precious-metal-bearing concentrates traded at premiums became the market norm.

In H1 2026, the comprehensive profit of primary lead smelting was between 1,000 and 2,500 yuan/mt, with by-product revenues from silver, copper, zinc, sulphuric acid, etc., contributing the majority of profit. Against the backdrop of continuously declining TCs (domestic Pb50 concentrate TCs had fallen to 150 yuan/mt in metal content, and import TCs dropped to -$170/dmt), the transparency of by-product pricing directly determined smelters' cost calculation and bidding strategies.

2. Mines and Smelters Lack Public Benchmark in Pricing Negotiations

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

3. Actual Value to the Industry Chain

1. Mine Side: Visibility of By-Product Value

Miners can quickly estimate the potential value of associated metals based on public indicators;
In TC negotiations, break free from the limitation of a single TC benchmark and incorporate comprehensive by-product benefits;
Resource assessment and mining right transaction pricing become more accurate.

2. Smelter Side: Refined Cost Calculation

When making procurement decisions, offer differentiated quotations based on the mine's ore grade;
By-product revenue forecasts are more accurate, and comprehensive profit calculations for primary lead are closer to reality;
Against the backdrop of deep TC declines and smelting losses, reassess the premium room for associated ores.

3. Trade and Finance Sector: Pricing Benchmark Transparency

Evaluation of imported lead concentrates and long-term contract negotiations have a basis to rely on;
Futures derivative pricing can refer to SMM's indicators;
The price transmission paths of silver, copper, zinc, and gold become more transparent.

SMM's lead concentrate pricing system has achieved full coverage of the four major associated metals: silver, copper, zinc, and gold, providing the market with a complete by-product pricing reference. The transparency, standardization, and continuity of the payable indicators are both a sign of market maturity and an infrastructure for high-quality development of the industry. SMM is willing to work with all parties in the industry chain to jointly promote the evolution of China's lead concentrate pricing mechanism in a more professional, efficient, and fair direction.

4. Data Access

You can log in to Shanghai Metals Market (website: www.smm.cn) and SMM Data Terminal (website: https://data-pro.smm.cn/terminal) to view the relevant prices under the lead-lead concentrates category in the prices section. The price points are updated weekly (before 17:00 every Friday, and earlier on holidays), ensuring you get the latest market price information.

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

Data Source Declaration: Except for publicly available information, other data is derived from public information, market communication, and based on SMM's internal database models, processed by SMM. It is for reference only and does not constitute decision-making advice.