April China TCs Were Expected to Face Resistance to Further Increases, Pending the Conclusion of Subsequent Negotiations [SMM Weekly Review of Zinc Concentrates]

SMM News, March 27:

Weekly data showed that the average weekly TC for SMM Zn50 domestic material was flat at 1,550 yuan/mt in metal content, while the SMM imported zinc concentrate index fell $7.51/dmt WoW to -$2.28/dmt.

China domestic ore market. As it was approaching month-end in March, domestic smelters began negotiating April zinc concentrate TCs this week. Pricing has not yet been fully finalized, pending follow-up negotiation results. It is understood that although domestic zinc concentrates were gradually resuming production, frequent disruptions outside China kept imported zinc concentrate supply tight. In addition, persistently high sulphuric acid prices continued to supplement smelter profits, and domestic smelters maintained robust demand for zinc concentrates. April domestic TCs are expected to face resistance to rising.

Imported ore market. This week, upstream and downstream players across the zinc industry chain gathered at an industry conference in Chengdu to jointly negotiate imported zinc concentrate TCs. It is understood that negative quotes for imported ore increased significantly this week, and overall TCs continued to decline. Some domestic smelters were still on the sidelines, and heard spot transactions for imported zinc concentrates were limited during the week.

During the 2026 SMM Chengdu Lead-Zinc Summit, the China Zinc Raw Material Joint Negotiation Group (CZSPT) also held its quarterly meeting and released the guidance price range for imported zinc concentrate procurement dollar-denominated treatment charges (TCs) before the end of Q2 2026: $35-70/dmt (average).

According to Boliden, seismic activity at Garpenberg has decreased, and mining production will begin in Q2. Throughput in Q1 was slightly below 800,000 mt, and while not all inspections have been completed, production in the most severely affected areas is not expected to resume in 2026. Therefore, until further notice, Garpenberg’s production is estimated at about 30% of its annual capacity guidance of 3.7 million mt. Based on the current situation, there is considerable uncertainty in the assessment of Garpenberg’s annual production. Preliminary assessment indicates that production will begin in Q2, initially at about 100,000 mt per month, or around 30% of the level before the unusually high seismic activity. The assessment also suggested that it may increase in H2.

This week, SMM zinc concentrate inventory at China main ports totaled 349,800 mt in physical content, down 21,200 mt in physical content WoW, with Lianyungang and Fangchenggang contributing most of the decline.