Winter stockpiling demand drives active smelter inquiries, with TCs remaining low [SMM Zinc Concentrates Weekly Review]

SMM, September 18:

On a weekly basis, the average weekly domestic TC for SMM Zn50 remained flat WoW at -2,100 yuan/mt Zn, while the SMM Imported Zinc Concentrate Index fell $2.75/dmt WoW to -$128.85/dmt.

Domestic ore market. Mid-month, domestic smelters continued to execute previously signed contracts this week, with new purchase volumes relatively limited during the week. It is understood that sulphuric acid prices have continued to slide recently, further squeezing production margins at domestic smelters. Smelting activity remained subdued, but winter stockpiling demand persisted, and no significant improvement in overall zinc concentrate supply-demand conditions has been observed yet.

Imported ore market. This week, traders offered more imported ore cargoes. Driven by winter stockpiling demand, some smelters actively sought quotes, and overall imported ore TCs extended their decline. According to market sources, recent transactions for standard-grade ore were concluded at around -$125 to -$130/dmt, while Antamina zinc concentrates were offered at -$150/dmt and Kipushi zinc concentrates at around -$140/dmt. In addition, market rumors suggested that the winning bid price for Dugald River zinc concentrates was around -$165/dmt, for December/January loading, with a cargo volume of 10,000 mt.

Zhongjin Lingnan announced on September 16 that its Fankou lead-zinc mine has completed rectifications in accordance with the requirements of the Guangdong Provincial Department of Emergency Management and passed inspections by higher-level safety regulators. Production will resume on September 17, 2026.

Korea Zinc reported to the Electronic Disclosure System of South Korea's Financial Supervisory Service on September 16 that an employee of a partner company tragically fell to his death that afternoon while installing panels on the roof of the No. 2 plant building at the Onsan smelter in Ulsan, South Korea. The worker stepped on a nearby skylight during the operation, causing it to shatter, and the safety harness lanyard snapped. The accident occurred at a core zinc smelting facility. Korea Zinc stated it will fully cooperate with the authorities' investigation and will formulate safety rectification and preventive measures based on the findings to prevent similar incidents from recurring.

This week, SMM zinc concentrate inventories at main ports in China totaled 274,000 mt in physical content, down 20,000 mt in physical content WoW, with Fangchenggang port inventories accounting for the bulk of the decline.