SMM News on October 31:
Domestic zinc concentrate TCs continued to decrease this week. On a weekly basis, the average SMM Zn50 domestic TC dropped by 400 yuan/mt in metal content WoW to 2,850 yuan/mt in metal content, while the SMM imported zinc concentrate index fell by $7.71/dmt WoW to $102.54/dmt.
In the spot market, as month-end coincided with the peak period for TC negotiations between smelters and mines, smelters' enthusiasm for snapping up domestic zinc ore remained subdued, driving TCs lower in multiple regions. For imported zinc ore, traders continued to lower their TC offers, with an increasing number of two-digit quotations. Recent transactions for Gamsberg zinc ore were heard below $110/dmt for year-end shipment, while common zinc ore was offered around $80-100/dmt, indicating a persistent downtrend in imported zinc concentrate TCs. Additionally, due to the low SHFE/LME price ratio, imported zinc ore was more than 2,000 yuan/mt in metal content more expensive than domestic ore. Coupled with enterprises' bearish outlook on future TCs, port ore traders showed little willingness to offer RMB-denominated zinc ore quotes recently, with few such offers heard in the market.
On October 27, an explosion occurred at the Endeavor silver, zinc, and lead mine in the Cobar region of New South Wales, Australia, resulting in the deaths of two workers and injuries to another. This was the first fatal mine explosion in Australia since 2015. Emergency responders rushed to the scene following the incident. Police reported that the deceased were a man in his 60s and a woman in her 20s, while another woman in her 20s sustained minor injuries and was shocked; she was airlifted to a hospital for treatment. The identities of the victims have not yet been released. The mine is held by Polymetals Resources, which suspended operations after the accident and applied for a two-day stock trading halt to cooperate with the investigation. The Endeavor mine entered care and maintenance in 2020; Polymetals acquired the mine in 2023 and planned to restart production. The mine resumed production in Q2 2025 and has already produced concentrates.
This week, SMM zinc concentrate inventories at main ports in China totaled 323,300 mt in physical content, down 68,100 mt WoW, with Lianyungang and Fangchenggang contributing the main decreases.
