Sulfuric Acid Price Drop Squeezes Zinc Smelter Margins, Supply Recovery Limited

With the Mid-Autumn Festival and National Day holidays approaching, SMM recently conducted a survey on holiday schedules and production arrangements among downstream zinc enterprises. The survey covered 88 companies across four sectors—galvanizing, galvanized sheet, die-cast zinc alloy, and zinc oxide—with a combined annual production capacity of approximately 43.82 million mt.

[Imported Zinc Concentrate Market] With the National Day and Mid-Autumn Festival holidays approaching, concentrate traders have made relatively few offers this week. However, losses on imported concentrates have narrowed significantly from early September. Meanwhile, with smelters making inquiries for winter stockpiling, some domestic smelters have shown stronger procurement interest, prompting concentrate traders in the market to continue lowering their treatment charge offers.

Silver Mountain Resources Inc. announced on September 21 that its Reliquias underground silver polymetallic mine in Peru had achieved first concentrate production. The Caudalosa processing plant has commenced concentrate production, confirming the operational readiness of the processing circuit and supporting infrastructure, in line with the company’s previously announced schedule to commence production in the third quarter of 2026. Initial feed came from approximately 45,000 tonnes of stockpiled material accumulated during underground mining operations. Concentrate shipments are expected to begin in October 2026.