Smelters Primarily Procured Domestic Zinc Ore, Focused on Subsequent TC Results Across Regions [SMM Zinc Concentrates Weekly Review]

SMM News on August 29:

Zinc concentrate TCs remained stable in September, with the SMM monthly average TC for domestic zinc concentrates flat at 3,950 yuan/mt in metal content. On a weekly basis, the SMM Zn50 weekly average TC for domestic concentrates was unchanged at 3,900 yuan/mt in metal content MoM, while the SMM imported zinc concentrate index rose $1.25/dmt to $93.75/dmt MoM.

In the spot market, smelters and mines in multiple domestic regions began negotiating September zinc concentrate TCs by month-end. Due to the low SHFE/LME price ratio, domestic ore maintained strong price competitiveness, prompting smelters to primarily procure domestic zinc concentrates. September domestic TCs may struggle to rise. Imported zinc ore transactions remained sluggish, with recent offers for standard concentrates around $90-100/dmt and containerized concentrates holding above $100/dmt for September/October shipments, keeping import TC indices elevated. Additionally, some monthly domestic zinc ore tender prices were released: a northern China mine's recent tender settled at 4,950 yuan/mt (including 20/80 sharing), down 50 yuan/mt in metal content MoM; a southwestern mine's September tender price was approximately 3,770 yuan/mt in metal content, down nearly 200 yuan/mt in metal content MoM. SMM will continue monitoring subsequent TC adjustments.

On August 27, Ivanhoe Mines announced the early and under-budget completion of bottleneck removal upgrades at the Kipushi zinc mine in DRC. The project, launched in September 2024, aimed to increase the beneficiation plant's capacity by 20% from 800,000 mt/year to 960,000 mt/year. After final maintenance and new equipment commissioning in early August, the concentrator's operational efficiency improved significantly, with DMS system utilization rising from ~70% to 96% and recovery rates exceeding 90%. The upgrades enabled Kipushi to achieve multiple records: mid-August daily output of 1,052 mt in zinc concentrate metal content (annualized over 340,000 mt); post-maintenance weekly output of 5,545 mt in metal content (annualized ~290,000 mt). Sustaining this level would position Kipushi as the world's fourth-largest zinc mine. The company maintained its 2025 production guidance of 180,000–240,000 mt.

On August 27, Hudbay Minerals reported resuming operations in Snow Lake, Manitoba after wildfire evacuation orders were lifted by provincial fire authorities and local government. No structural damage occurred to surface facilities during the wildfires, with shaft and electrical system safety checks completed post-evacuation. The New Britannia beneficiation plant restarted on August 26, followed by full Lalor mine crew returns on August 27. Hudbay had temporarily suspended Snow Lake mining and exploration activities on June 4 due to northern Manitoba wildfires. On June 14, the mandatory evacuation order in the Snow Lake area was lifted, and Hudbay resumed partial operations. However, in early July, the evacuation order was reissued, and the company suspended operations at the mine again. On August 22, the mandatory evacuation order was suspended, and the mine subsequently resumed operations. The company expects full recovery of Snow Lake's overall operations by early September and maintains its 2025 annual production guidance for Manitoba unchanged.

This week, SMM zinc concentrates inventory at China's main ports totaled 414,000 mt, up 25,500 mt WoW, with Fangchenggang Port showing significant inventory growth.