Mine-side disruptions continue, awaiting September TC pricing [SMM Zinc Concentrates Weekly Review]

SMM August 21 news:

Weekly data shows that the average weekly TC for domestic Zn50 was flat WoW at -1,550 yuan/mt Zn, and the SMM Imported Zinc Concentrate Index fell $10.12/dmt WoW to -$117.5/dmt.

Domestic ore market. In the middle of the month, domestic smelters have mostly been executing earlier zinc ore purchase contracts recently, with limited new procurement volumes overall, and domestic TCs in many regions remained persistently low. According to market sources, frequent accidents at domestic mine sites in recent months led to production halts due to safety inspections at some mines in North China; the timeline for resuming production is currently unknown. Overall domestic zinc concentrate supply decreased MoM, and the overall tight supply situation continues. Keep an eye on the month-end negotiations for September zinc concentrate TCs.

Imported ore market. Trading sentiment in the imported ore market was somewhat sluggish this week, with many ore traders still offering, but the SHFE/LME price ratio remained persistently low. China's import losses for zinc concentrates were nearly 2,000 yuan/mt. Considering profit factors, smelters' purchase willingness for imported ore was low. According to market sources, this week imported ore traders offered South American zinc concentrates with high zinc content at around -120 to -150 $/dmt, and imported zinc concentrate TCs continued to decline.

According to the latest customs data, China imported 425,600 mt of zinc concentrates (in physical content) in July 2026, up 17.29% MoM from June and down 15.12% YoY. The cumulative zinc concentrate imports from January to July stood at 3.1872 million mt (in physical content), up 5% YoY cumulatively.

This week, SMM's zinc concentrate inventories at China's main ports totaled 273,000 mt in physical content, up 29,000 mt in physical content WoW. Fangchenggang port contributed the major growth.