China Zinc/Lead Market Weekly Updates - 2025/7/25

The SMM Imported Zinc Concentrate Index for this week is $76.25/dmt, with a 3.39% WoW increase.

The SMM Imported Lead Concentrate average spot TC for this week is $-60/dmt, down WoW by another $5/dmt.

Spot Market & Tender Updates

• Market sentiment remained sluggish this week as smelters continued to hold sufficient raw material inventories. Most believe there is still room for TCs to rise and are refraining from purchasing, or are prioritizing domestic ores. Imports are only considered when domestic stock runs out.

• Some smelters reported ongoing negotiations for imported concentrates, with terms around $70/mt; high-grade ores are quoted up to $80/mt. Bisha was offered at $65/mt, with gold payable, but copper not payable.

• One smelting company reported receiving an offer from Trafigura at $60/mt for Antamina zinc concentrate, containing 2.1% copper, with copper not payable.

• Market sources noted that TCs for concentrates with rich payable by-products stocked at the port have reached RMB 4,000/mt, with cleaner concentrates quoted at RMB 4,500–4,600/mt. Gamsberg is also offered at RMB 4,500–4,600/mt. Clean concentrates have been difficult to sell recently, forcing suppliers to raise TCs. Meanwhile, imported TCs continue to rise, and some deals have been concluded. Recent bulk shipments are priced between $70–85/mt, material with rich payable by-products are trading around $70/mt and normal ores reaching $80/mt.

Global Mine & Smelter Insights

• On July 24th, Canada-based Teck Resources released its Q2 2025 report. Zinc concentrate production at the Red Dog mine reached 136,600 tonnes, slightly lower year-on-year due to declining ore grades, while lead concentrate output remained stable at 27,500 tonnes. The concentrate shipping season commenced on July 11th. Red Dog's Q2 zinc concentrate sales totaled 35,100 tonnes, down 35% YoY due to timing of sales (e.g., customer scheduling, logistics), though still above the previously disclosed guidance range of 25,000 to 35,000 tonnes. Teck expects the seasonal inventory build-up in the first half to reverse in Q3, and has issued Q3 sales guidance of 200,000–250,000 tonnes for Red Dog zinc concentrate. Annual production guidance remains unchanged at 430,000–470,000 tonnes for zinc and 85,000–105,000 tonnes for lead. On the refining side, Trail Operations produced 50,900 tonnes of refined zinc in Q2, a 14,000-tonne decline from the same period last year. The reduction aligns with Teck’s previously disclosed plan to optimize profitability amid challenging smelter market conditions. Annual refined zinc production guidance for Trail remains unchanged at 190,000–230,000 tonnes.

• Teck also stated it is closely monitoring the evolving U.S. tariff landscape and actively managing its concentrate sales strategy. Refined zinc, lead, and minor or precious metals exported from Trail to the U.S. comply with the United States-Mexico-Canada Agreement (USMCA). Teck did not mention how they will deal with the long-term contracts of zinc concentrate delivery with Chinese buyers amid the tariff.

• On July 22nd local time, Glencore announced its decision to sell the Lady Loretta zinc mine and associated land to Austral Resources. The acquisition will enable Austral to extract additional copper ore from its existing Lady Annie Mine, which adjoins the boundary of Glencore’s Lady Loretta lease. Lady Loretta is one of Glencore’s key zinc-lead assets within the Mount Isa multi-metal mining region in Queensland, Australia. Glencore had previously announced plans in October 2023 to wind down operations at Mount Isa and associated assets, including the northern-based Lady Loretta mine. According to a report released in early 2025, zinc operations at Lady Loretta are scheduled to cease by the end of the year, with the transaction expected to complete around the same time.

• The Mount Isa region primarily comprises two zinc-lead mines: George Fisher and Lady Loretta. Public data indicates average annual ore production of approximately 3 million tonnes at George Fisher and 1.6 million tonnes at Lady Loretta. Based on this ratio, Lady Loretta contributes roughly 34% of Mount Isa’s total zinc-lead ore output. Following its closure, Mount Isa’s zinc-lead concentrate production may decline by around one-third, while operations at George Fisher are expected to continue at least through 2036.

Weekly SMM Data

• This week, zinc concentrate inventories at major Chinese ports totalled 354,000 tonnes, down by 86,000 tonnes from last week. The concentrated arrival of raw materials purchased by a major domestic smelter last week at Fangchenggang Port has now been sent away, which led to the rapid decrease. As of Thursday, SMM surveyed social inventories across seven regions in China, totalling 98,300 tonnes, with a slight weekly build of 5,600 tonnes and a WoW increase of 4,800 tonnes. Zinc prices surged notably this week, dampening downstream purchasing enthusiasm and leading to an increase in inventory levels.

• 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 71,400 tonnes, with a weekly build of 100 tonnes and a WoW increase of 2,400 tonnes. Spot offers from social inventory warehouses remained relatively firm in this week, while downstream buyers with rigid demand showed a stronger preference for sourcing directly from smelters. As a result, inventories at major smelter warehouses in key production regions declined this week, whereas social inventories continued to see a slight increase.

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

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