Domestic Ore Supply Remains Tight, TCs Continue to Decline [SMM Zinc Concentrates Weekly Review]

SMM News on November 21:

Domestic zinc concentrate TCs continued to decline this week. On a weekly basis, the SMM Zn50 domestic TC average dropped by 250 yuan/mt in metal content WoW to 2,350 yuan/mt in metal content, while the SMM imported zinc concentrate index fell by $10.45/dmt WoW to $73.05/dmt.

In the spot market for ore, tight supply of domestic zinc concentrates persisted this week. Smelters continued to actively purchase domestic zinc concentrates, leading to further declines in TCs across multiple regions, with reductions ranging from 150 to 300 yuan/mt in metal content. For imported zinc concentrates, as losses on imports narrowed compared to earlier periods, domestic smelters' purchase willingness improved, resulting in increased transactions in the imported zinc concentrate market recently. Imported zinc concentrate TCs continued to trend lower. It is reported that a trader and a smelter recently concluded a deal for Dugald River zinc concentrates, involving 10,000 mt in physical content, with a quotation period of M+5 and a TC of around $60/dmt. Additionally, ordinary zinc concentrates for shipment from December to Q1 were traded at $70-80/dmt, with volumes of 30,000-40,000 mt in physical content and a quotation period of M+2.

According to a disclosure by Polymetals Resources on November 18, ore hoisting and grinding operations at the Endeavor silver-zinc mine commenced on November 15. The mining team has now transitioned from day shifts only to continuous shift work, following a rigorous review of equipment operations and usage procedures prior to resuming operations. Furthermore, after the first successful shipment of zinc concentrates in October, shipments of silver-lead concentrates are ongoing in preparation for scheduled dispatches in early December.

This week, SMM zinc concentrate inventories at main ports in China totaled 274,200 mt in physical content, down 31,500 mt WoW, with Fangchenggang port contributing the majority of the decrease.