Zinc/Lead Market Weekly Updates - 2025/9/5

The SMM Imported Zinc Concentrate Index for this week is $96.25/dmt, with a 2.67% WoW increase.

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

Spot Market & Tender Updates

• Smelters continue to prioritize procurements on domestic concentrates, with limited offers and concluded deals for imported material.

• One smelter reported receiving recent offers for slightly higher-grade ore, with 100-unit parcels on bulk carriers at around USD 120/t, but noted that no deals were finalized.

• A trader commented that the market remains disorderly: Q4 concentrates are quoted in the USD 60–70/t range, while higher offers at USD 140–150/t are also seen. Willingness to adjust prices largely depends on how close the shipping window is.

Global Mine & Smelter Insights

• Some quick fact updates for Huoshaoyun project in China. From September 20 to 30, the plant is expected to produce zinc ingots. Lead ingot output is very limited, with no scheduled timeline. Current mine inventories stand at 150,000 tonnes, and smelters hold 300,000 tonnes of raw material stock. Shipments to smelters this year have totaled 350,000 tonnes, in addition to 150,000 tonnes in stock at the beginning of the year. The company indicated that production this year will likely reach around 350,000 tonnes, with a further 150,000 tonnes estimated later, bringing total 2025 production to roughly 500,000 tonnes. There is uncertainty about when operations may be suspended in September due to the inspections, but the inspection should take 3 months. For zinc ingots, the 2025 production target remains at 50,000 tonnes. If everything goes smoothly from that inspection, they will produce at full capacity starting from next year, targeting 400-500kt for 2026.

• On September 5th, First Majestic Silver announced positive drilling results from the 2024/2025 exploration program at the Los Gatos mine in Chihuahua, Mexico. The campaign targeted the South-East Deeps, Central Deeps, and North-West Deeps zones, confirming significant silver, zinc, and lead mineralization outside the current reserve base. The results demonstrate continuity and expansion potential, supporting expectations for a meaningful resource growth at Los Gatos, following First Majestic’s 2024 acquisition of Gatos Silver.

• On Sept 4, Emerita Resources Corp. has secured a substantial USD 35 million fourth tranche under its amended loan agreement with Nebari Resources, bringing the total financing capacity for the Iberian Belt West (IBW) Project to USD 50 million. To date, only the first tranche has been drawn. Remaining funds are available at Emerita’s discretion to support exploration, engineering, permitting, and infrastructure development as the company advances toward a development decision. Emerita’s CEO, David Gower, emphasized that the expanded facility provides “increased financial flexibility… with less dilution,” ensuring no delays in long-lead equipment procurement. Nebari’s Managing Director, Steven Bowles, noted that the enhanced loan facility reflects confidence in IBW’s significantly expanded resource base. As part of the updated agreement, Emerita will issue 1.22 million warrants at C$1.45 (expiry Aug 2028), with additional bonus warrants triggered upon drawing Tranche 4. All issuances are pending TSXV approval. Based on the current timeline of the project, it is expected to reach the stage of likely development decision from early 2026.

Weekly SMM Data

• This week, zinc concentrate inventories at major Chinese ports totalled 428,900 tonnes, up by 14,900 tonnes from last week. As of Thursday, SMM surveyed social inventories across seven regions in China, totalling 148,900 tonnes, with a weekly build of 2,600 tonnes and a WoW increase of 4,400 tonnes. Part of the regions in China has seen an increase in downstream procurement activities while the others are not, plus some regions are impacted by limited amount of transportation or production, social inventory only rose slightly within the week.

• This week, lead concentrate inventories at major Chinese ports totalled 29,500 tonnes, up by 3,300 tonnes from last week. As of Thursday, social inventories across seven regions in China stood at 66,100 tonnes, with a weekly depletion and WoW decrease both at 1,000 tonnes. In the first half of the week, transportation restrictions in parts of North and Central China due to the SCO summit and military parade extended delivery cycles for smelters. Some downstream consumers continued to draw on lead ingot inventories from social warehouses, leading to a further decline in visible stocks. Following the conclusion of the parade and related events on September 3, vehicle restrictions in some regions were lifted, increasing the flow of spot market supply. However, with lead consumption remaining lackluster, there is a risk that social inventories of lead ingots may begin to accumulate in the coming period.

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

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