SMM News on August 28:
In the weekly data, the average weekly TC for SMM Zn50 domestic material fell by 300 yuan/mt Zn to -1,850 yuan/mt Zn, while the SMM imported zinc concentrate index declined by $5.75/dmt to -$123.25/dmt.
Domestic ore market. With month-end approaching, domestic smelters began negotiating September zinc concentrate TCs this week. As the tightness in domestic ore continued to worsen, mines still showed some willingness to cut September TCs. At present, TCs in many parts of China have not been fully settled, pending subsequent pricing results. According to market sources, a mine in Southwest China offered a September zinc concentrate EXW tender price of around -2,500 yuan/mt Zn this week, down about 900 yuan/mt Zn MoM.
Imported ore market. Recently, imported ore traders have been quoting more actively, with overall offers holding around -$120 to -$150/dmt. However, with the SHFE/LME price ratio at a low level, smelters showed limited enthusiasm for purchasing imported ore, and transactions were basically on an as-needed basis. Market sources indicated that a deal for standard zinc concentrates was recently done around -$130/dmt, with imported zinc concentrate TCs remaining persistently low.
Nyrstar said its Budel zinc smelter in the Netherlands completed a major shutdown maintenance lasting 71 days, one of the largest maintenance programs at the plant in decades, involving several hundred employees and more than 700 contractors. The core work included installing a new roasting furnace to replace equipment that had been operating for more than 50 years. The plant also installed a new sulphuric acid absorption tower and completed related works for the sulphuric acid unit. This upgrade will help enhance the safety, efficiency, and reliability of Budel’s future operations. Budel’s refined zinc production in 2026Q1 was 59,100 mt, down 8.7% YoY; after May, its monthly output was only around 2,000 mt, indirectly reflecting the impact of this major maintenance on actual production in Q2/Q3.
This week, SMM zinc concentrates inventories at China’s main ports totaled 283,000 mt in physical content, up 10,000 mt in physical content WoW, with Fangchenggang contributing the main increase.
