Domestic and imported ore price spread narrows significantly, imported ore TCs continue to decline [SMM Zinc Concentrates Weekly Review]

SMM News on October 16:

Weekly data showed that the average weekly TC for SMM Zn50 domestic material was flat WoW at -2,350 yuan/mt Zn, while the SMM Imported Zinc Concentrate Index fell $14.48/dmt WoW to -$150.2/dmt.

Domestic ore market. This week, domestic smelters continued negotiations over October zinc concentrate TCs. Some domestic smelters showed a certain willingness to raise TCs, but overall supply and demand in the domestic ore market saw no significant improvement, and sellers had a relatively weak willingness to raise. Negotiations in some regions were relatively stagnant, and overall domestic ore TCs changed little from September.

Imported ore market. After the National Day holiday, the SHFE/LME price ratio for zinc narrowed significantly. Coupled with smelters’ ongoing winter stockpiling demand, imported ore traders in the market recently lowered their TC offers markedly. According to market sources, recent imported ore TC offers basically fell to around -$170/dmt, but domestic smelters showed poor willingness to accept low TCs, resulting in fewer deals in the imported ore market recently.

According to reports, the beneficiation plant at the Bisha mine in Eritrea, under Zijin Mining, suspended processing starting last week, and clients have been informed that cargo deliveries may be affected. The company said that due to a regional temporary fuel shortage, maintenance originally scheduled for year-end was brought forward. Fuel supply has now tended to stabilize, but no clear timeline for resuming production has been announced. Zijin Mining is responsible for control and day-to-day operations of the Bisha mine, while Eritrea’s state mining company holds a 45% stake. The mine produced 83,000 mt of zinc in 2025.

This week, SMM zinc concentrates inventories at China’s main ports totaled 251,000 mt in physical content, down 30,000 mt in physical content WoW, with Fangchenggang accounting for the bulk of the decline.