High Smelter Production Enthusiasm, Domestic TC Declined MoM in April [SMM Zinc Concentrates Weekly Review]

SMM April 10 News:

Weekly data, the SMM Zn50 domestic weekly average TC remained flat WoW at 1,350 yuan/mt Zn, while the SMM Imported Zinc Concentrate Index fell $4.75/dmt WoW to -$19.25/dmt.

Domestic ore market. This week, April zinc concentrate TC pricing for China was finalized, with TCs in multiple regions declining MoM from March. Supply and demand perspective, on one hand, sulphuric acid prices continued to climb, and with by-product profits continuously supplementing margins, smelters maintained high production enthusiasm, with China's refined zinc production continuing to rise in April, increasing demand for zinc concentrates; on the other hand, although domestic mines were gradually resuming production, the SHFE/LME price ratio deteriorated recently, and smelters actively purchased domestic zinc concentrates given the cost advantage. Under the combined influence of multiple factors, zinc concentrate TCs in multiple regions across China declined in April.

Imported ore market. This week, imported ore traders continued to lower their offer prices. It was learned that CIF offers for some ordinary ore had dropped to -$30 to -$20/dmt, while port spot cargoes of high-grade ore at domestic ports were quoted as low as -$60/dmt. Overall, the imported ore market remained tight, and the downtrend in import TCs continued.

According to an announcement by China Nonferrous Metal Industry's Foreign Engineering and Construction Co., Ltd. (NFC), on April 2, 2026, its controlling subsidiary NFC Indonesia Dairi Mining Co., Ltd. obtained the Environmental Feasibility Decision (SKKL) issued by the Ministry of Environment of the Republic of Indonesia, approving lead-zinc mining activities in SilimaPungga-Pungga Township, Dairi Regency, North Sumatra Province. The mine is an underground mining operation with a designed capacity of 1 million mt/year. In 2024, the total resources/reserves of the Dairi lead-zinc mine were: ore volume of 20.7009 million mt, zinc metal content of 2.2562 million mt, lead metal content of 1.3203 million mt, with an average zinc grade of 10.90% and an average lead grade of 6.38%.

This week, SMM zinc concentrate inventories at main ports in China totaled 298,000 mt in physical content, down 19,000 mt in physical content WoW, with Nanjing port inventories contributing the main decrease.