SMM Survey: China Zinc Smelters See Higher Raw Material Inventory Days as Ore Supplies Loosen

Korea Zinc recently said its subsidiary KEMCO began trial production of crude germanium products at Onsan, Ulsan, in August 2026. Mass production is scheduled to begin in Q4 2026, followed by commercial sales in Q1 2027. The company also plans to commence commercial production of 99.999%-pure germanium dioxide in H2 2027, significantly ahead of its original 2028 target. Korea Zinc also plans to expand its germanium production capacity through the Project Crucible integrated smelting complex in the US. Construction remains scheduled for 2027–2029, with completion and commissioning targeted for the end of 2029. The facility is expected to produce 13 strategic metals, including copper, lead, zinc, germanium, gallium and antimony. The accelerated KEMCO project, combined with the planned US facility, will further expand Korea Zinc’s role in germanium supply chains outside China.

According to SMM data, as of October 23, the weekly average TC for SMM Zn50 domestic zinc concentrate stood at -2,350 yuan/mt of metal, largely unchanged from the end of September. In contrast, the weekly import zinc concentrate TC index fell to -$156.5/dmt, down approximately $20/dmt from the end of September. Against a backdrop of domestic TCs fluctuating at low levels, import TCs declined rapidly in October. What drove this divergence, and what is the outlook?

[SMM Analysis: October Zinc Concentrate TCs Diverge Between Domestic and Imported Markets; What Are the Expectations Going Forward?] According to SMM data, as of October 23, the weekly average SMM Zn50 TC was -2,350 yuan/mt (Zn contained), basically flat from month-end September, while the weekly imported zinc concentrate index was -$156.5/dmt, down about $20/dmt from month-end September. Against a backdrop of domestic zinc concentrate TCs consolidating at lows, imported zinc concentrate TCs fell rapidly in October. Why is this happening, and what is the outlook going forward?...