China Zinc/Lead Market Weekly Updates - 2025/7/18

The SMM Imported Zinc Concentrate Index for this week is $73.75/dmt, with a 10.94% WoW increase.

The SMM Imported Lead Concentrate average spot TC for this week is $-55/dmt, flat from the previous week's figure.

Spot Market & Tender Updates

• Spot transactions remained limited this week, with smelters generally well-stocked and import market activity subdued.

• Market sources report that Glencore sold one shipment of Antamina zinc concentrate at $70/dmt (CIF, Cu not paid), scheduled for August–September shipment. It is worth noting that most Glencore Q4 offers are still quoted at $50–60/dmt at this moment, so 70 is actually a huge number. Traders believe the favorable price was due to urgent delivery needs and scheduling constraints.

Global Mine & Smelter Insights

• Boliden released its Q2 2025 earnings on July 18. The company cited lower treatment charges, a weaker USD, and extended planned maintenance as key factors negatively impacting operating profit. On the production front, Boliden revised down the expected annual zinc grade at Garpenberg from 3.3% to 3.1%, attributing the change to delayed sill pillar mining in some areas due to more challenging ground conditions. Tara’s ore throughput slightly declined QoQ, producing 20.4kt of zinc in concentrate and 1.9kt of lead in concentrate. The recently acquired Somincor and Zinkgruvan experienced maintenance-related impacts, with power outages in the Iberian Peninsula also affecting Somincor. Nonetheless, Q2 output remained stable: Somincor produced 26.1kt zinc and 1.9kt lead concentrates, while Zinkgruvan reported 22.2kt and 8.4kt respectively. Odda smelter produced 46.2kt of refined zinc, up from both Q1 and Q2 2024. Its expansion project entered an intensive commissioning phase in Q2, with full production expected by late 2025.

• Bunker Hill Mining reported substantial progress on the restart of its Idaho-based mine. As of H1 2025, construction is 67% complete with 98% of procurement finalized. The company has begun stockpiling payable ore. The restart remains on track for H1 2026, following a successful equity and debt restructuring earlier this year.

Weekly SMM Data

• This week, zinc concentrate inventories at major Chinese ports totalled 440,000 tonnes, up by 107,000 tonnes from last week. Among them, Fangchenggang contributed an increase of 80,000 tonnes, mainly due to the concentrated arrival of raw materials purchased by a major domestic smelter. This is not expected to last. As of Thursday, SMM surveyed social inventories across seven regions in China, totalling 93,500 tonnes, with a slight weekly build of 400 tonnes and a WoW increase of 3,200 tonnes. Warehouse arrivals were normal, while downstream demand remained weak, leading to lower offtake and continued inventory buildup.

• This week, lead concentrate inventories at major Chinese ports totalled 14,000 tonnes, remaining flat from last week. As of Thursday, social inventories across seven regions in China stood at 69,000 tonnes, with a weekly build of 5,600 tonnes and a WoW increase of 7,900 tonnes. The delivery of the SHFE 2507 lead contract this week led to a continued transfer of inventory into registered warehouses, pushing up social inventory levels. As delivery ends next week and the spot-futures spread narrows, inventory movement may pause. Considering lower-than-expected primary lead production and continued loss faced by secondary lead producers, the pace of social inventory buildup for lead ingots is expected to slow.

Author: Yueang He, Zinc & Lead Analyst of SMM UK

Contact: yueanghe@smm.cn | +44 (0)7522 173725