Tight Domestic Ore Market Persists, Zinc Concentrate TCs Continue to Decline [SMM Zinc Concentrates Weekly Review]

SMM News, May 15:

Looking at weekly data, the SMM Zn50 domestic weekly average TC decreased 150 yuan/mt Zn WoW to 550 yuan/mt Zn, and the SMM Imported Zinc Concentrate Index fell $8.45/dmt WoW to -$54.2/dmt.

Domestic ore market: As mid-month approached, domestic smelters' raw material procurement slowed this week. However, the overall tight ore supply in the market remained unchanged. Coupled with the persistently unfavorable SHFE/LME price ratio, smelters prioritized purchasing domestic zinc concentrates, and zinc concentrate TCs across multiple regions in China continued to decline. It was learned that a mine in northwest China recently set its May zinc concentrate self pick-up tender price below 300 yuan/mt Zn.

Imported ore market: Offers in the imported ore market increased this week. Some domestic smelters purchased as needed, and overall spot cargo transactions during the week were limited. It was learned that Gamsberg zinc concentrates were recently offered at -$40/dmt, and Antamina zinc concentrates were offered at -$65/dmt, with the contained metals priced separately. Additionally, it was heard that Volcan mine transactions were concluded at around -$60/dmt. Market imported zinc concentrate TCs continued to decline.

Kazzinc said on Tuesday that the zinc smelter and lead smelter at its Ust-Kamenogorsk metallurgical complex in eastern Kazakhstan were operating at reduced capacity following an explosion last week. The explosion occurred at Kazzinc's zinc smelter, killing 3 people and injuring 5. Kazzinc is Kazakhstan's largest zinc, lead, and precious metals producer, controlled by Glencore. The company has not yet disclosed the specific impact of the incident on production and stated that site cleanup and accident investigation are still ongoing.

On May 13, 2026, Nexa Resources announced that an accident at the Cajamarquilla zinc smelter in Peru caused a fire in the morning. The fire has been brought under control, and operations have been suspended. It was reported that no fatalities occurred, with 4 people injured and in stable condition. Some infrastructure at the smelter was damaged. Based on currently available information, the company expects the incident will not have a significant impact. According to SMM, Cajamarquilla is the largest zinc smelter in Latin America, with refined zinc production of 345,300 mt in 2025, the highest since commissioning. The actual impact going forward still requires further monitoring.

This week, SMM zinc concentrate inventory at China's main ports totaled 283,000 mt in physical content, an increase of 29,000 mt in physical content WoW, with Fangchenggang port inventories contributing the main increment.