Zinc/Lead Market Weekly Updates - 2025/8/22

The SMM Imported Zinc Concentrate Index for this week is $92.5/dmt, with a 2.44% WoW increase.

The SMM Imported Lead Concentrate average spot TC for this week is $-90/dmt, down by 12.5% WoW.

Spot Market & Tender Updates

• Discussions with several smelters this week suggest that some of them are turning to imported zinc concentrate for September deliveries, as domestic supply is now rather limited and economically unviable. There still appears to be some room for negotiation on imported spot terms. The recent sharp increase in zinc concentrate treatment charges (TCs) is slowing, while the lead concentrate market remains tight, with TCs continuing to decline.

• One smelter reported that for late-September shipment from the Bisha mine, the seller is currently offering at $95/dmt, but no deal has been concluded. They did purchase a 5,000-tonne shipment from Peru at $110/dmt, containerized, scheduled for late September to early October delivery.

• Another smelter said they had received a tender from New Century, with pricing below $70/dmt for October shipment. No offers were heard at Chinese ports, while Antamina is still offering at $80/dmt.

• A production company confirmed hearing about the New Century tender as well, with pricing close to $70/dmt for two cargoes (September and November), each around 10,000 tonnes. Trafigura and Mercuria are reportedly taking one shipment each. Iran has exported approximately 280,000 tonnes of zinc concentrate to China so far this year, with estimates pointing to 400,000 tonnes in 2026. Endeavor’s supply is mostly contracted by Trafigura, around 50,000 tonnes annually. There is also a 40,000-tonne Bisha tender, with results expected in September, covering 10,000 tonnes per quarter.

Global Mine & Smelter Insights

• Nexa Resources has announced on 19th August, the full resumption of operations at its Cerro Pasco Complex in Peru. The Atacocha and El Porvenir mines have returned to normal capacity utilization following the end of an illegal protest by a small group from the San Juan de Milpo community, which had temporarily blocked access to the site. The disruption resulted in an estimated production loss of approximately 1.2kt of zinc. (1 week production). Nexa expects to recover this volume within the coming month and confirmed that its full-year 2025 production guidance remains unchanged. 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.

• On August 18, Hindustan Zinc Ltd (HZL) announced that its Board has approved the establishment of India’s first zinc tailings reprocessing plant at Rampura Agucha, Rajasthan. The facility will have a designed capacity of 10 Mtpa and an investment of ₹3,823 crore, targeting completion within 28 months from the start date. The plant will recover valuable metals such as zinc and silver from tailings, marking a key step in the company’s strategy to double production capacity, enhance resource efficiency, and promote the circular economy. Earlier in June 2025, HZL approved the first phase of expansion at Debari, involving a new 250 ktpa integrated smelter and related mine and concentrator expansions. This project, scheduled for completion in 36 months, is expected to lift total zinc and lead capacity from the current ~1.13 Mtpa to more than 2 Mtpa, while raising silver output to up to 1,500 tonnes per year.

• Sibanye-Stillwater reported that production at its Century zinc retreatment operation reached 51.3kt of payable zinc in the first half of 2025, an increase of 22% compared to the same period last year. Output in H1 2024 had been impacted by heavy rainfall in the region, making the latest figures a marked recovery and positioning the operation well within annual guidance.

• On August 1st, Volcan Compañía Minera announced that its Romina zinc project in Peru’s Lima region has reached 50% completion. The company expects the project to commence operations in the second quarter of 2026. Romina is positioned as a key development for Peru’s mining sector, aiming to boost zinc output and support the local economy. The milestone underscores Volcan’s commitment to advancing production capacity and highlights Peru’s role as a growing force in the global zinc market, driven by rising demand from construction, renewable energy, and electronics industries.

• According to SMM, with National Day celebrations and military parade preparations approaching, lead and zinc mines in northern China have not yet been affected by explosives control measures, although safety inspections have become more frequent. In Tianjin, environmental restrictions remain in place. Vehicles below China V emissions standards are currently banned from entering plants. Galvanizing enterprises rated as Category B are required to cut production by 50%, while Category C producers have been fully suspended. Category A facilities remain unaffected for now. These measures are expected to last until September 4. Overall, the impact on mining operations and galvanizing production in northern China remains limited.

Weekly SMM Data

• This week, zinc concentrate inventories at major Chinese ports totalled 388,500 tonnes, up by 34,500 tonnes from last week. A shipment of 40,000 tonnes of zinc concentrate from the Middle East has recently arrived at China’s Lianyungang port. As of Thursday, SMM surveyed social inventories across seven regions in China, totalling 132,900 tonnes, with a weekly depletion of 2,500 tonnes and a WoW increase of 3,700 tonnes. With price going down within the week the willingness of purchasing recovers, more downstream procurement led to a slight decrease in social inventory within the week.

• This week, lead concentrate inventories at major Chinese ports totalled 26,200 tonnes, up by 18,200 tonnes from last week. 16,000 tonnes of imported lead concentrate recently arrived at Chinese Qinzhougang Port. As of Thursday, social inventories across seven regions in China stood at 69,900 tonnes, with a weekly depletion of 1,800 tonnes and a WoW decrease of 1,100 tonnes. As lead prices declined this week, some downstream buyers restocked based on actual demand and took deliveries from warehouses near consumption regions, leading to a further decline in social inventories of lead ingots.

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

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