Lead concentrate TCs were lowered by 50 yuan/mt Pb overall this week. The average weekly TC for domestic Pb50 was reduced to 200 yuan/mt Pb, while some silver-lead ores rich in copper and zinc were still quoted with high TCs above -2,000 yuan/mt Pb due to reasons such as non-pricing or low pricing of contained metals. Overall, lead concentrates remained in tight supply. Due to low arrivals of imported ore, the average weekly TC for imported Pb60 was reduced to -145 $/dmt, and the mainstream quotation range for smelters was lowered to -160 to -130 $/dmt. A few smelters accepted quotations above -200 $/dmt for imported silver-lead ores with good richness due to by-product revenue needs and other reasons. Some smelters have not yet finalized their prices for this month. In terms of negotiations and expectations, lead concentrates exhibited a polarization trend: smelters paid less attention to low-richness ores, but were still willing to accept high-metal-richness silver-lead ores. Additionally, the decline in imported zinc ore, to some extent, fueled the tight supply sentiment for lead ore, making lead concentrate TCs more likely to fall than rise. Meanwhile, the silver coefficient in lead concentrates remained unchanged, mainly because silver prices stayed range-bound and the coefficient had already risen to a relatively high level, thus remaining largely stable overall.

Lead concentrate TCs were flat overall this week. The weekly average TCs for domestic Pb50 concentrates held steady at 250 yuan/mt Pb. Some silver-lead ores rich in copper and zinc still quoted TCs far below market transaction prices because the contained metals were either not valued or priced at low levels. Overall, the lead concentrate market remained tight, with limited traded volumes of imported ore. The weekly average TCs for imported Pb60 concentrates stood at -$135/dmt. Smelters maintained mainstream quotations in the range of -$150 to -$130/dmt, while some individual smelters, due to by-product revenue needs and other factors, were still willing to accept quotations of -$180 to -$200/dmt for high-grade imported silver-lead ore. This week was in the period of price negotiations for next month's deliveries. Smelters remained willing to accept silver-lead ore with high payable metal content. Coupled with the reduction in imported zinc ore, which to some extent fueled tightness sentiment in lead ore, it is expected that lead ore TCs still have some downside room ahead. As the silver payable coefficient in lead concentrates has risen to a relatively high level, and silver prices continued to trade in a range, the payable coefficient for silver remained unchanged for now.

[Insight into Provincial Profit Landscape: New Release of Zinc Smelting Profit Model by Province] In May 2026, the zinc market is experiencing unprecedented structural pressure. TCs for imported zinc concentrates have fallen to -$56.25/dmt, while domestic TCs dropped weekly to 400 yuan/mt Zn. Meanwhile, the sulphuric acid export control policy continued to take effect in May, with some 98% smelting acid in south China declining by around 300 yuan/mt, directly impacting an important by-product revenue source for smelters. LME zinc inventory of around 100,000 mt stands in sharp contrast to China's social inventory exceeding 260,000 mt. The pattern of "tight ore and loose ingots" has made smelters the most severely squeezed link in the industry chain......

SMM compiled production data from 20 major miners outside China. Based on disclosed production figures, these 20 miners produced a total of 1.282 million mt of zinc ore in Q1 2026, down 54,300 mt YoY (-4.1%) and down 119,500 mt QoQ (-8.5%). Ex-China zinc concentrates production declined significantly in Q1 2026!

[Vedanta Q1 Production Release] Vedanta released its FY2026 Q1 report, which showed that Vedanta's zinc concentrates metal production totaled 364,000 mt in the quarter, up 1% YoY. Specifically, Zinc India's Q1 zinc ore production was 31,500 mt, up 2% YoY, mainly benefiting from increased ore production and improved grade; Zinc International's Q1 zinc ore production was 49,000 mt, down 3% YoY, primarily due to lower feed grade and reduced lead recovery, partially offset by higher milling throughput.

[Fundamentals Present Mixed Signals; SHFE Zinc Maintained Fluctuating Trend] The most-traded SHFE zinc 2607 contract opened at 24,720 yuan/mt. After the opening, SHFE zinc dipped to a low of 24,675 yuan/mt. Subsequently, bulls increased their open interest, driving SHFE zinc continuously higher above the daily average line, reaching a high of 24,935 yuan/mt during the session. It finally closed up at 24,865 yuan/mt, gaining 200 yuan/mt or 0.81%. Trading volume increased to 49,676 lots, and open interest increased by 4,625 lots to 99,206 lots.....