Negotiations on Zinc Concentrate TCs for February Begin, Domestic and International TCs Continue to Rise [SMM Zinc Concentrates Weekly Review]

SMM, January 24:

Zinc concentrate TCs are expected to continue rising in February. The monthly average domestic TC for SMM zinc concentrates increased by 500 yuan/mt (metal content) MoM to 2,400 yuan/mt (metal content), while the monthly average TC for SMM Zn50 imported zinc concentrates rose by $45/dmt MoM to $25/dmt. On a weekly basis, the weekly average domestic TC for SMM Zn50 increased by 200 yuan/mt (metal content) MoM to 2,350 yuan/mt (metal content), and the weekly average TC for SMM Zn50 imported zinc concentrates rose by $10/dmt MoM to $10/dmt.

In the spot market, negotiations for February zinc concentrate TCs began domestically this week. Smelters remain optimistic about higher TCs; however, due to the impact of the Chinese New Year holiday, pricing in several regions has yet to be finalised. For imported zinc ore, as some traders have already started their holiday break, recent spot quotes for zinc concentrates have been scarce, and transactions for imported zinc ore this week remained sluggish. Despite the increasing number of mine shutdowns for the holiday, some traders are optimistic about the future trend of TCs and have shown a high willingness to sell recently, keeping spot market liquidity ample. Additionally, a mine in south China recently tendered February zinc concentrates at 2,800 yuan/mt (metal content), showing a significant MoM increase compared to January. With sufficient pre-holiday inventory, smelters plan to further raise TCs for both domestic and imported zinc concentrates in February.

According to the latest customs data, imports of zinc concentrates in December 2024 totaled 457,300 mt (physical tons), up 0.31% MoM (1,400 mt) and up 3.49% YoY. From January to December, cumulative imports of zinc concentrates reached 4.0971 million mt (physical tons), down 13.26% YoY.
This week, SMM zinc concentrate inventory at China's main ports totaled 386,200 mt, up 41,400 mt WoW, with port zinc ore inventory continuing to rise.

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