SHFE/LME price ratio at low level, imported zinc ore transactions remain sluggish [SMM Zinc Concentrates Weekly Review]

SMM August 22 News:

This week, domestic zinc concentrate TCs remained stable, while imported zinc concentrate TCs increased MoM. Specifically, the SMM Zn50 domestic weekly TC average remained flat at 3,900 yuan/mt in metal content, and the SMM Imported Zinc Concentrate Index rose by $2.2/dmt to $92.5/dmt.

In the spot market, the loss from importing zinc ore stayed around 1,000 yuan/mt this week, making domestic zinc ore more price-competitive. Smelters continued to mainly purchase domestic zinc ore, with imported zinc ore transactions remaining sluggish. According to SMM, the recent New Century zinc mine tender results were close to $70/dmt, won by a trader, with 20,000 mt of ore to be shipped in two batches in September and November. Recently, domestic smelters and traders have been transacting for regular zinc ore arriving in containers in October, with transaction TCs around $110/dmt, indicating a sustained upward trend in imported zinc concentrate TCs.

Nexa Resources announced on the 19th that its Cerro Pasco mine in Peru had fully resumed normal operations. The Atacocha and El Porvenir mines have returned to normal capacity utilization levels after illegal protests by a small group from the San Juan de Milpo community caused temporary access disruptions. This short-term, localized operational disruption is expected to result in a zinc production loss of approximately 1,200 mt in metal content, but the company expects to make up for the lost production within the next month. Nexa reaffirmed that its 2025 full-year production guidance remains unchanged.

On August 1, 2025, it was reported that the Romina zinc project in Peru has completed 50% of its construction, with operator Volcan Compañía Minera planning to officially start production in Q2 2026. Located in the Lima region of Peru, the project is seen as a key mining initiative for boosting zinc production and local economic development in Peru. The halfway completion not only demonstrates Volcan's commitment to technology and capacity development but also highlights the strategic significance of large-scale resource projects in the Latin American natural resources industry. The launch of the Romina project will further solidify Peru's position in the global zinc market, meeting the growing demand for zinc in sectors such as construction, new energy, and electronics.

This week, SMM zinc concentrate inventories at China's main ports totaled 388,500 mt, up 34,500 mt WoW, with Lianyungang Port showing a significant increase.