Zinc calcine processing fees edged down in May—how will they trend in June?[SMM Analysis]

Published: May 29, 2026 17:45

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Zinc calcine processing fees edged down in May—how will they trend in June?

Zinc calcine processing fees edged down in May—how will they trend in June?

Raw material side: Affected by invoice issues, raw material prices remained at high levels, putting enterprises' profits clearly under pressure. Additionally, market circulation of raw materials decreased, increasing procurement costs for zinc calcine enterprises, which suppressed zinc calcine processing fees.

Demand side: Currently, secondary zinc plants maintained stable production schedules. Affected by declining operating rates at galvanising enterprises, zinc slag procurement became difficult, and zinc oxide enterprises purchased crude zinc as a substitute for zinc slag. Secondary zinc demand was relatively strong. Meanwhile, with zinc concentrate TCs at historical lows, some smelters increased the use of zinc calcine as supplementary raw material, pushing zinc calcine processing fees down.

June outlook: The raw material shortage caused by invoice issues cannot be alleviated in the short term. However, as the off-season begins, demand will weaken. Considering profitability, further declines in processing fees would be unacceptable for secondary zinc enterprises. Zinc calcine processing fees are expected to be range-bound, with limited room for either increases or decreases.

Data Source Statement: Except for publicly available information, all other data are processed by SMM based on publicly available information, market communication, and relying on SMM's internal database model. They are for reference only and do not constitute decision-making recommendations.

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