Weekly Brief Review of the Lead Concentrate Market (September 8, 2025 - September 12, 2025) [SMM Lead Concentrate Weekly Review]

Quotes for imported ore for forward delivery remain scarce. A trader noted that the tender price for lead concentrates from Dugald River for delivery six months later has fallen to -$160/mt (metal content), which is also related to the strength in precious metal prices. Additionally, SMM learned that recently arrived imported lead ore (with 400 g/t silver content and 6-7% zinc content) sold via domestic trade on a self pick-up basis was transacted at a RMB price of -500 yuan/mt in metal content. A smelter indicated that even after accounting for by-product revenues, processing at this TC quote would still result in a loss after smelting. However, some smelters are willing to accept such raw material supplements to ensure supply and maintain normal operations.

In the domestic ore market, smelters in north China mentioned that winter stockpiling might start earlier. One smelter stated that raw material reserves would begin around October, and multiple smelters are demanding higher silver and other precious and rare metal content in lead ore to pursue comprehensive benefits. As a result, TCs for low-silver lead ore generally remain at 400-600 yuan/mt in metal content, while TCs for polymetallic-rich lead ore have fallen to near zero. Given that supply and demand for lead concentrates are expected to maintain a tight balance in Q4, SMM has lowered lead concentrate TCs for this week based on market transactions. Additionally, smelters in Hunan and Yunnan have relatively low raw material inventories overall. Some smelters, to ensure raw material stocks for normal production cycles, have quoted -200 yuan/mt pb50TC, but the lead ore market overall shows a situation of having prices but no market, with limited actual transactions.