Zinc Concentrate TCs Negotiations Begin in December, TCs Continue to Decline [SMM Zinc Concentrates Weekly Review]

SMM November 28 News:

Domestic zinc concentrate TCs continued to decrease this week. On a weekly basis, the SMM Zn50 domestic weekly TC average dropped by 300 yuan/mt in metal content WoW to 2,050 yuan/mt in metal content, while the SMM imported zinc concentrate index fell by $11.8/dmt WoW to $61.25/dmt.

In the spot ore market, as the month-end approached, domestic smelters began negotiating December zinc concentrate TCs this week. Against the backdrop of current zinc ore shortages, the downward trend in domestic December zinc concentrate TCs persisted. However, pricing outcomes from many regions have not yet been finalized, and SMM will continue to monitor the negotiation progress next week. For imported zinc concentrates, recent market offers were chaotic, but the overall quotation center continued to decline. According to SMM, the recent Antamina zinc mine tender result was below $30/dmt, with a tender volume of 10,000 mt and a January shipment period. Additionally, poor-brand zinc ore was traded at around $60-70/dmt at the port, with a volume of about 10,000 mt. It was also heard that Gamsberg zinc ore offers dropped to around $60/dmt. Imported zinc concentrate TCs continued to decline this week.

The Swedish Land and Environment Court approved Boliden's application to expand the existing environmental permit for its local Garpenberg lead-zinc mine. The decision took effect immediately (though it can still be appealed), allowing the mine to increase its annual mining volume from the previous 3.5 million mt/year to 4.5 million mt/year. The mine is currently advancing the construction of paste backfill capacity to meet higher mining demands. Several additional investments are still required to reach the new permitted capacity level, but this approval lays the foundation for Garpenberg's future expansion and flexible operation.

This week, SMM zinc concentrate inventories at main ports in China totaled 302,000 mt in physical content, an increase of 27,800 mt in physical content WoW, with Qinzhou port inventories contributing the main increment.