Domestic TCs remain stable, while import TCs increase slightly [SMM Zinc Concentrates Weekly Review]

SMM News on May 16:

This week, zinc concentrate TCs saw a slight increase. The weekly average SMM Zn50 domestic TC price remained flat WoW at 3,500 yuan/mt (metal content), while the weekly average SMM Zn50 imported TC price rose by US$5/dmt WoW to US$45/dmt.

In the spot ore market, as it was mid-month, smelters primarily focused on executing previously signed domestic zinc ore contracts, with domestic zinc concentrate TCs remaining stable across multiple regions. Regarding imported zinc ore, the SHFE/LME price ratio weakened this week, closing the ore import window. Domestic smelters maintained around 27 days of raw material inventories. With ample raw materials, they remained bullish on subsequent TCs. During the week, smelters and traders concluded deals for recently shipped Antamina zinc ore, with transaction TCs around US$40. Imported zinc concentrate TCs continued to rise. Recently, Iranian ore spot transactions at ports were concluded at 3,800 yuan/mt (metal content) for self pick-up, while Antamina spot transactions were concluded at 2,800 yuan/mt (metal content) for self pick-up. Additionally, there was a tender for zinc ore from Russia's Longxing Mine recently. Bidding closed during the week, with a tender volume of 20,000-30,000 mt to be shipped in batches in H2. SMM will continue to monitor the subsequent tender results.

According to the government of the Tuva region and Russian media outlet Channel 108, Longxing LLC (LLC Lunsin), a subsidiary of Zijin Mining Group operating the Kyzyl-Tashtyg (Longxing) mine in Russia's Tuva Republic, is facing financial difficulties due to escalating international sanctions and restricted Sino-Russian financial cooperation. It was reported that Li Kaiwen, the company's general manager, had signed a suspension order, affecting 1,200 employees, including around 800 local residents. In addition to financial pressures, the company is also subject to frequent inspections by Russian regulators. Currently, the mine has not fully halted production but may face a production suspension risk in June. The mine produced approximately 71,300 mt of zinc concentrates and 4,750 mt of lead concentrates in 2024. SMM will continue to monitor subsequent developments.

This week, SMM zinc concentrate inventories at China's main ports totaled 380,000 mt, down 10,000 mt WoW, indicating a slight decline in port zinc ore inventories.

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