Zinc Concentrate TCs Remain Low, Continued Focus on Subsequent Smelter Operations [SMM Zinc Concentrate Weekly Review]

SMM June 18 news:

On a weekly basis, the SMM Zn50 domestic weekly TC average fell 150 yuan/mt Zn WoW to -200 yuan/mt Zn, and the SMM Imported Zinc Concentrate Index fell $0.56/dmt WoW to -$71.76/dmt.

Domestic Ore Market. As of mid-month, most domestic smelters were executing previously signed contracts, with limited new spot purchases during the week. Overall, TCs remained low across many regions in China. According to SMM, some domestic smelters carried out routine maintenance and production cuts in June, but overall refined zinc output did not decline significantly MoM. The tight domestic ore supply has not yet improved, and the market continues to monitor smelter operations going forward.

Imported Ore Market. Overseas mines have been constantly disrupted recently. This week, imported ore offers remained scarce, with some heard at around -$80 to -$90/dmt. However, smelters exhibited strong wait-and-see sentiment, and the overall trading atmosphere was relatively sluggish during the week. Market sources indicate that another tender for Dugald River zinc concentrates was awarded at around -$120 to -$130/dmt, for shipment at end-Q4, with a volume of 10,000 mt. The market awaits subsequent tender results for other ore types.

On June 16, 2026, a magnitude 6.3 earthquake struck Dachaidan, Haixi, Qinghai. According to SMM, major zinc smelters and mines in Qinghai were unaffected for now. SMM will continue to follow up on subsequent impacts.

According to market sources, the situation in Bolivia has been turbulent recently, with nationwide protests severely disrupting transportation. Exports and transportation of Bolivian zinc concentrates have been hindered. The duration and magnitude of impact remain unknown, and SMM will continue to monitor subsequent developments.

This week, SMM zinc concentrate inventories at main ports in China totaled 280,000 mt in physical content, down 16,000 mt WoW, with Fangchenggang port inventory accounting for most of the decline.