TCs for imported zinc ore continue to rise, while domestic TCs remain stable [SMM Weekly Review of Zinc Concentrates]

SMM News on July 18:

This week, domestic zinc ore TCs remained stable, while imported zinc ore TCs increased on a WoW basis. Specifically, the weekly average SMM Zn50 domestic TC price remained unchanged at 3,800 yuan/mt (metal content) MoM, and the SMM Imported Zinc Concentrate Index rose by $7.27/dmt WoW to $73.75/dmt.

In the spot ore market, zinc ore trading remained sluggish this week, with domestic zinc ore TCs remaining stable. However, negotiations for August TCs may commence domestically next week. Amid sufficient raw material supplies, smelters' reluctance to budge on prices persists. In the imported market, the SHFE/LME price ratio remained low, resulting in low purchase willingness among smelters. Some traders actively raised their TC quotes to facilitate sales. It is reported that a trader and a smelter concluded a deal for Antamina zinc ore to be shipped recently, with a TC of $70 and a volume of 10,000 mt. Regular zinc ore was also quoted at $70-80/dmt, and imported zinc ore TCs continued to rise.

On July 10 local time, Hudbay Minerals announced that due to wildfires in northern Manitoba, the company would suspend operations in the Snow Lake area in an orderly manner in accordance with the mandatory evacuation order that came into effect today to ensure employee safety and comply with local regulations. The company stated that it believed the risk of its infrastructure in Snow Lake being threatened by wildfires was low and that it was not expected to suffer substantial damage. Hudbay's operations in the Flin Flon area remained unaffected, but some exploration activities near Snow Lake had been suspended. Previously, on June 4, the company temporarily suspended operations in the Snow Lake area in response to a wildfire evacuation order from Manitoba. Operations at mines and beneficiation plants were gradually resumed from June 14-16, with personnel returning to work. However, due to worsening fire conditions, the Manitoba provincial government issued a new evacuation order on July 10, prompting Hudbay to suspend operations in the Snow Lake area in compliance with local regulations. Despite short-term wildfire disruptions, the company maintained its 2025 full-year production guidance for the Manitoba region unchanged, at 21,000-27,000 mt (metal content) of zinc concentrates.

This week, SMM zinc concentrate inventory at China's main ports totaled 440,000 mt, an increase of 107,000 mt WoW, indicating a significant rise in port zinc ore inventory.