Zinc/Lead Market Weekly Updates - 2025/8/15

The SMM Imported Zinc Concentrate Index for this week is $90.3/dmt, with a 9.79% WoW increase.

The SMM Imported Lead Concentrate average spot TC for this week is $-80/dmt, down by 23.08% WoW.

Spot Market & Tender Updates

• A smelter reported that some traders are still offloading unsold material. Purchases in recent weeks have been mostly above $90/t, with some OZ ore even at $150/t.

• A Chinese smelter said that in previous contracts for imported lead concentrate, silver pricing normally included a 50g deduction, but some extreme offers now remove this deduction entirely — effectively raising the price. With 50g of silver worth around $40–50, this represents a significant cut to the lead concentrate TC. However, the mainstream practice still appears to be applying the 50g deduction.

• One company reported recent offers in the range of $75–95/t, with those above $90/t being containerised, lower-quality material. Port-pickup prices at Lianyungang and Fangchenggang were quoted at RMB 3,800–4,100/t. The company believes Zhuzhou Smelter’s contract with Red Dog may not go ahead and could be swapped for other supply.

• Another smelter indicated that for benchmark concentrates such as Dugald River, they would only consider taking cargo above $100/t and have not heard of any recent offers.

• A smelter said they received a port spot offer at $60–70/t (pickup at port), with copper content at 1.5%–1.6%, but no deal was concluded.

Global Mine & Smelter Insights

• Market sources indicate that the agreement between Teck's Red Dog and Chinese Nanfang Smelter on 60k of zinc in concentrate is close to being finalized, with Teck covering 90% of the tariffs and Nanfang 10%. Nanfang has also signed for Red Dog's lead concentrate, which has already arrived, with the tariffs split equally between both parties. Negotiations between Teck and with Zhuzhou Smelter, on another 40k of zinc in concentrate have yet to be concluded.

• On August 12, Nexa Resources announced that its Cerro Pasco Complex, which includes the Atacocha and El Porvenir mines, has partially and temporarily suspended operations due to an illegal blockade by a small group from the San Juan de Milpo community. The blockade is part of ongoing protest activities and has not yet had a material impact on production, with the mines currently limited to essential safety and maintenance work. Nexa stated it will continue constructive dialogue with the community and authorities to seek a peaceful and prompt resolution, reaffirming its commitment to the social and economic development of its host communities. The Cerro Pasco Complex produces approximately 1,200 tonnes of zinc per week. Based on the company’s latest 2025 production guidance, El Porvenir is expected to produce 53–62kt of zinc in concentrate and 21–26kt of lead in concentrate, while Atacocha is forecast to produce 10–12kt of zinc in concentrate and 13kt of lead in concentrate. The guidance remains unchanged at this time.

• According to Reuters, sources say Trafigura has been pulling large amounts of zinc from LME warehouses in Singapore, sending some to the US — likely to cover Nyrstar’s supply during an upcoming maintenance shutdown at its Clarksville smelter. LME zinc stocks have dropped over 30% since late July, with another 33,000 t set to leave. Some of the zinc is also said to be tied to “rent-deals”, and traders suggest the US shipments could be ahead of potential import tariffs once a trade investigation wraps up.

• On August 13, Hudbay Minerals announced it has agreed to sell a 30% interest in its fully permitted Copper World project in Arizona to Mitsubishi Corporation for $600 million. The transaction includes $420 million payable at closing and an additional $180 million within 18 months, with Mitsubishi also funding its pro-rata share of future capital contributions. Phase I of Copper World has a planned 20-year mine life, producing an average of 85,000 tonnes of copper annually (about 92,000 tonnes in the first 10 years) at cash costs of $1.47/lb.

Weekly SMM Data

• This week, zinc concentrate inventories at major Chinese ports totalled 354,000 tonnes, up by 4,600 tonnes from last week. As of Thursday, SMM surveyed social inventories across seven regions in China, totalling 129,200 tonnes, with a weekly build of 10,000 tonnes and a WoW increase of 16,000 tonnes. Downstream remains reluctant to purchase during the traditional off-season, plus production in parts of northern China has been affected by the upcoming military parade.

• This week, lead concentrate inventories at major Chinese ports totalled 8,000 tonnes, down by 3,500 tonnes from last week. As of Thursday, social inventories across seven regions in China stood at 71,700 tonnes, with a weekly build of 1,700 tonnes and a WoW decrease of 600 tonnes. As the delivery of the SHFE lead 2508 contract's coming, some holders have moved stock for delivery, leading to a scheduled build in social lead ingot inventories. The traditional peak season for the lead-acid battery market has yet to materialize, with downstream producers largely producing based on the number of orders. In addition, after the recent rally in lead prices followed by a slight pullback, some companies have become more cautious in procurement. Willingness to deliver into warehouses remains limited, and social inventories are expected to see a limited amount of increase next week.

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

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