Zinc Calcine Processing Fees Continue to Fall in September as Smelters Face Tight Ore Supply[SMM Analysis]

Published: Sep 18, 2026 11:05

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Zinc calcine processing fees continued to decline in September, as smelters increased demand for zinc calcine amid tight zinc ore supply. Meanwhile, tighter availability of raw materials, coupled with rising coking coal and coke prices, further pushed up production costs for zinc calcine producers, putting continued pressure on processing fees.

Since September, zinc calcine processing fees have continued to decline, with market negotiation levels moving lower. On the demand side, zinc ore treatment charges remain at historically low levels, while some smelters are facing tight ore supply. As a result, smelters have increased their purchases of zinc calcine as a supplementary raw material, providing stronger demand for zinc calcine. With zinc ore supply remaining tight, zinc calcine has become more valuable as a substitute for mined ore, putting further downward pressure on processing fees.

On the raw material side, the availability of key feedstocks such as steelmaking dust has remained tight, while raw material prices have continued to rise. At the same time, recent increases in coking coal and coke prices have further raised production costs for zinc calcine producers. With raw material prices rising while processing fees continue to decline, producers are facing increasing pressure on profit margins, weighing on their willingness to maintain production.

Overall, the continued decline in zinc calcine processing fees is mainly driven by tighter zinc ore supply and increased demand from smelters. Meanwhile, rising raw material prices, together with higher coking coal and coke prices, have further intensified cost pressures on producers. In the near term, the tight supply of zinc ore is unlikely to ease significantly, while smelter demand for zinc calcine is expected to remain supportive. Therefore, zinc calcine processing fees are likely to remain under downward pressure, with the market closely watching changes in zinc ore supply and raw material prices.

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

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