SMM December 19:
Domestic zinc concentrate TCs held steady this week. On a weekly basis, the SMM Zn50 domestic weekly TC average remained flat at 1,600 yuan/mt in metal content, while the SMM imported zinc concentrate index fell $0.43/dmt WoW to $50.13/dmt.
Domestic ore market. Most domestic smelters continued to execute previously negotiated contracts mid-month, with limited new purchases. Domestic zinc concentrate TCs remained stable this week. According to SMM, losses on imported zinc concentrates narrowed significantly and turned positive this week, reopening the import window for ore after half a year. The price spread between imported and domestic zinc concentrates has largely narrowed, reducing smelters' urgency to compete for domestic material. The decline in TCs across many regions paused recently.
Imported ore market. The imported zinc concentrate market was quiet this week. Previous winter stockpiling demand led to substantial purchases, but demand weakened recently, resulting in sluggish transactions. It is understood that a trader and a smelter concluded a deal for Antamina zinc concentrate scheduled for Q1 shipment, with a QP of M+2 and TCs around $30/dmt. Other regular zinc concentrate offers were reported near $40/dmt.
On December 15, KOREA ZINC announced plans to participate in the US strategic mineral supply chain and strengthen future growth drivers by building an integrated non-ferrous metals smelter in the US. The project will be advanced through its US subsidiary Crucible Metals, LLC, aiming to construct a complex smelter that integrally produces and recycles major non-ferrous metals like zinc, lead, and copper; precious metals like gold and silver; and strategic minerals like antimony, germanium, and gallium. The smelter will be constructed in phases (2027-2029) with staged commercial operation start-ups, targeting a zinc capacity of 300,000 mt.
Nyrstar disclosed on December 15 that it reached an agreement with Korea Zinc regarding assets in Tennessee, US, involving the East Tennessee and Middle Tennessee mining complexes, and the Clarksville zinc smelter currently owned or operated by Nyrstar. Under the terms, Korea Zinc plans to acquire fully permitted sites in Tennessee and build a new large-scale integrated smelter at Clarksville. The transaction is subject to certain conditions, including regulatory approvals, and is expected to complete in H1 2026. Zinc metal production from the Clarksville smelter in 2026 will continue to be sold to Trafigura.
SMM zinc concentrate inventories at main Chinese ports totaled 337,000 mt in physical content this week, up 25,000 mt WoW, with Huangpu port contributing the main increase.
