Some China Zinc Smelters Vulnerable to Ore Shortage, with TCs Stable

Published: Dec 31, 2015 10:13 (GMT+8)

Save

Zinc prices are still low despite recent gains.

SHANGHAI, Dec. 31 (SMM) - Operating rates at some small and medium mines fell further due to languishing market and nearing of China’s New Year holiday, so some zinc smelters in South China will be vulnerable to ore tightness in January, SMM says.

“Zinc prices are still low despite recent gains. So some zinc mines producing low grade ore intend to suspend operation soon as China’s New Year holiday in 2016 nears,”said an SMM zinc analyst.

TCs of domestic zinc concentrate (50%) were stable at 5,300-5,500 yuan per tonne (zinc content) this past week, and those for imported zinc concentrate (50%) were $150-170 per dry metric tonne (DMT), with the low-end of $140, according to SMM data.

Profit from imported ore inverted from 80 yuan to 170 yuan per tonne losses compared with domestic ore, SMM calculates.

For news cooperation, please contact us by email: sallyzhang@smm.cn or service.en@smm.cn.

Zinc prices zinc smelters imported zinc concentrate TCs domestic zinc concentrate TCs

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.

For any inquiries or for more information, please contact: lemonzhao@smm.cn

For more information on how to access our research reports, please contact:service.en@smm.cn

Related News

6 hours ago

India ADC 12 Holds Firm as LME Aluminium Falls; Tight Scrap Supply Limits Downside

India ADC 12 prices remained relatively resilient despite a 1.2% decline in LME aluminium 3-month prices between September 24 and 30.

6 hours ago

7 hours ago

Rio Tinto Secures Bell Bay Smelter Operations Through End-2031

Rio Tinto announced on October 1 that it had reached agreements with the Tasmanian Government, the Australian Commonwealth Government and Hydro Tasmania to extend electricity supply to the Bell Bay aluminium smelter through the end of 2031. The two governments will also provide a combined A$200 million support package over five years, contributing A$100 million each. Commercial terms of the power agreement were not disclosed. Bell Bay produces around 190,000 tonnes of primary aluminium annually, while its existing electricity contract was due to expire at the end of 2026. The agreement removes the smelter’s immediate operational uncertainty. Bell Bay is the third major Australian aluminium smelter to receive government-backed support in 2026, following Boyne and Tomago, highlighting continued pressure from high electricity costs and international competition.

7 hours ago

Sep 30, 2026 22:03 (GMT+8)

Domestic Aluminum Ingot Accumulation After National Day Holiday Expected to Be Moderate and Controllable

head of the National Day holiday, domestic aluminum ingot inventories continued to set fresh year-to-date lows. According to SMM statistics, as of September 30, electrolytic aluminum ingot inventories in China's major consuming regions stood at 638,000 mt, down 36,000 mt from Monday and 40,000 mt from last Thursday. The pace of pre-holiday destocking was relatively fast overall, leaving ample buffer for inventory accumulation during the holiday...

Sep 30, 2026 22:03 (GMT+8)