Frequent Supply Disruptions, Imported TCs Continue to Decline [SMM Zinc Concentrates Weekly Review]

SMM News, March 6:

In weekly data, the average weekly TC for SMM Zn50 domestic concentrates stayed flat at 1,550 yuan/mt in metal content, while the SMM Imported Zinc Concentrate Index fell $8.37/dmt WoW to $15.38/dmt.

Domestic ore market. During the week, smelters continued negotiations on March zinc concentrate TCs. Pricing results in many regions were basically finalized, and overall TCs rose slightly from February. In addition, the March zinc concentrate tender results for a mine in Southwest China were released during the week, with the winning bid price at around 1,400 yuan/mt in metal content on a self pick-up basis.

Imported ore market. As traders gradually ended their post-holiday breaks, offers in the imported ore market increased this week. However, Australia’s transportation issues remained unresolved, and escalating tensions in the Middle East raised market concerns over Iran’s zinc concentrate exports. Supply-side disruptions persisted, and against this backdrop, ore traders remained bearish on imported TCs. It was learned that recent offers from Peru’s Volcan mine had dropped to single-digit levels, while offers for other zinc-rich concentrates also fell below $20/dmt, with overall imported zinc concentrate TCs continuing to decline.

It was reported that the benchmark TC for 2026 imported zinc concentrate deals between Canadian mining company Teck Resources and South Korean zinc company Korea Zinc was $85/dmt, rebounding slightly from $80/dmt in 2025, but with higher charges for silver and germanium after prices for these two metals surged.

This week, SMM zinc concentrate inventory at China’s main ports totaled 349,000 mt in physical content, down 31,000 mt in physical content WoW, with Lianyungang and Fangchenggang contributing the bulk of the decline.