SMM is proud to launch Imported Zinc Concentrate Index

As domestic zinc smelting capacity gradually expands, the reliance of domestic zinc smelters on imported zinc concentrate has been increasing year by year, and market attention to imported zinc ore has intensified. To better serve industrial clients and more closely align with market prices, SMM now plans to upgrade the existing two price point indices, Zn50 Imported TC (weekly) and Zn50 Imported TC (monthly), into the Imported Zinc Concentrate Index (weekly) and Imported Zinc Concentrate Index (monthly), which are scheduled to be launched on June 6.

I. Price Definition

The SMM Imported Zinc Concentrate Index is an indicative price formed and published by SMM in accordance with this methodology, which can be used by both trading parties as a reference for settlement in spot trade of imported zinc concentrate. This price reflects the actual or potentially executable spot transaction prices of imported zinc concentrate during the week when the SMM Imported Zinc Concentrate Index is released.

II. Data Source

The SMM Imported Zinc Concentrate Index is calculated based on transaction data from the spot market for imported zinc concentrate. Therefore, SMM attaches great importance to the sources of transaction data. To enhance the market representativeness of the index, SMM aims to collect transaction information from as many buyers and sellers as possible. Consequently, every participant in the spot market for imported zinc concentrate can submit their actual or executable transaction data in accordance with the SMM Imported Zinc Concentrate Index Data Specification. This specification is designed to ensure the accuracy and validity of the data submitted by participants.

III. Data Adoption

The SMM Imported Zinc Concentrate Index Data Specification outlines the parameter information that market participants must include in the data they submit. This includes brand name, type of imported zinc concentrate, elemental content, trading volume, pricing method, and other information that may affect the pricing of imported zinc concentrate. This ensures the completeness and accuracy of the data, assisting SMM in determining whether a transaction should be included in the database for calculation.

The SMM Imported Zinc Concentrate Index is derived from the weighted average of standardized adopted data. To prevent inappropriate impacts on the index from small-value transactions and non-compliant imported zinc concentrate transactions, SMM sets limits on transaction parameters. Only transaction data with parameters within the specified ranges are included in the calculation of the Imported Zinc Concentrate Index. Parameter restrictions include minimum trading volume limits, brand and other elemental content range limits, etc.

IV. Price Publication

The SMM Imported Zinc Concentrate Weekly Index is published before 3:00 p.m. on the last working day of each week, provided that there are more than 2 working days in that week. The SMM Imported Zinc Concentrate Monthly Index is released on the last working day of the month. Additionally, the SMM Monthly Index is calculated as the arithmetic mean of the compliant Weekly Indices.

V. Methodology Changes

The spot trading market for imported zinc concentrate is constantly evolving. Therefore, SMM will maintain close communication with market participants, incorporating representative contract terms from spot transactions into the considerations for the index methodology.

Any revisions to the index methodology must first pass through SMM's rigorous internal control procedures. After the revision proposal has been internally reviewed and approved, SMM will announce the revision proposal on its website and notify index users, accepting feedback from users for at least 30 days. Once SMM confirms the adoption of the revised index methodology, it will publish the new index methodology on its website and notify index users, including details on the specific application time of the new methodology.

For further suggestions and feedback on the SMM Imported Zinc Concentrate Index methodology, please contact: Li Hanyu at 021-51666847; lihanyu@smm.cn