High Zinc Slag Payables: How Will It Trend Going Forward? [SMM Analysis]

Published: Apr 22, 2026 14:20

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SMM, April 22: According to SMM, zinc slag payables have remained at elevated levels. What are the reasons behind this? How will they trend going forward?

SMM, April 22: According to SMM, zinc slag payables have remained at elevated levels. What are the reasons behind this? How will they trend going forward?

SMM identifies the following key reasons:

End-use consumption fell short of expectations. Galvanising enterprise operating rates in April were slightly better than in March, but overall rates missed expectations and were weaker YoY. Amid weakening demand, operating rates diverged between large and small producers. Overall zinc slag production was not high, and due to fewer orders, it was difficult for processing fees to rise. Galvanizing plants had limited room to offer concessions, keeping the payables relatively firm.

Zinc price movements provided support for zinc slag payables. In March, zinc prices continued to pull back, and considering cost concerns, some galvanising enterprises held back from selling, waiting for zinc prices to rebound before selling. The market experienced severe shortages, and the payables rose accordingly. Entering April, zinc prices rose notably, and galvanising enterprises' willingness to sell increased. However, some galvanising enterprises still had a mentality to hold prices firm when selling, and zinc slag payables stayed high.

In April, zinc oxide enterprises overall maintained good operating rates, and demand for raw materials rose. However, crude zinc enterprises only began to gradually resume production in March, leaving limited spot cargo in the market. Low-grade zinc oxide remained relatively tight. Zinc oxide enterprises' demand for zinc slag increased, and under conditions of undersupply, zinc slag payables stayed high.

Looking ahead, the zinc price center has shifted upward, but galvanizing plant operating rates remain lackluster. Zinc slag supply remains tight, while zinc oxide operating rates hold steady. Based on current galvanising enterprise operating rates and future expectations, there are limited opportunities for the payables to be adjusted downward.

Data Source Statement: Except for publicly available information, all other data are processed by SMM based on publicly available information, market communication, and relying on SMM's internal database model. They are for reference only and do not constitute decision-making recommendations.

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