[Zinc Concentrates Production Information] Gold Resource disclosed its production for Q4 2025, during which its zinc metal production was 750 mt. In 2025, its copper, lead, and zinc production fell 59%, 56%, and 54%, respectively, from 2024. These declines mainly reflected the sequencing of mining into portions of the mineralized system with a relatively higher proportion of precious metals and lower base metal content than in the previous year.

SMM News on March 20: The most-traded SHFE lead 2605 contract opened at around 16,461 yuan/mt intraday. Affected by broad declines across base metals, lead prices moved in a unilateral downward trend overall today, hitting a low of 16,270 yuan/mt during the session. Although prices edged up slightly toward the close, the rebound was limited, and the contract finally closed at 16,290 yuan/mt. A small bearish candlestick was recorded, down 125 yuan/mt, or 0.76%. Supply side, dragged down by low lead prices, suppliers of primary lead showed mediocre willingness to ship, while secondary lead producers held prices firm and were reluctant to sell due to cost pressure, leaving overall transactions sluggish. Demand side, downstream battery plants mainly purchased based on rigid demand under long-term contracts, while wait-and-see sentiment for spot orders remained strong. SMM expects SHFE lead prices to remain in the doldrums. Data Source Statement: Except for public information, all other data is processed and derived by SMM based on public information, market communication, and SMM's internal database models, and is for reference only and does not constitute decision-making advice.

SMM News, March 20: LME lead opened at $1,905/mt this week and fluctuated lower in early trading under the influence of sentiment. It then climbed to a high of $1,938/mt supported by buying interest. In the latter part of mid-week, bullish momentum weakened, and amid weaker macro conditions and a weaker base metals sector, lead prices fell again and touched a low of $1,872.5/mt. They then rebounded slightly and consolidated toward the end of the week, finally closing at $1,881.5/mt, down $23.5 from the beginning of the week, a decline of 1.23%. The most-traded SHFE lead contract opened at 16,585 yuan/mt this week. In early trading, bears entered the market, sending prices quickly down to 16,245 yuan/mt, after which it fluctuated at lows. Mid-week, as bears exited the market, SHFE lead prices rebounded to a high of 16,795 yuan/mt, but under pressure from slack spot supply and demand and bearish macro sentiment, it struggled to rebound and its center moved lower. Toward the end of the week, bears continued to exert pressure, and lead futures remained weak, finally closing at 16,290 yuan/mt, down 315 yuan on the week, a decline of 1.9%. > Subscribe to View Historical SMM Metal Spot Prices

[Market Participants Became More Rational in Sentiment, and Grain-Oriented Silicon Steel Prices May Fluctuate Rangebound Next Week] In terms of transactions, the procurement pace of end-use industries such as downstream transformers and power equipment slowed down, and purchase willingness remained cautious, with procurement mainly consisting of small-volume, as-needed restocking orders, while large-volume purchasing activity was scarce, resulting in relatively low actual market trading activity. In addition, resources from steel mills’ earlier directed orders arrived successively, and traders’ circulating inventory accumulated steadily. Some merchants offered slight price concessions to accelerate turnover and boost shipments, but the overall room for concessions remained limited and failed to effectively lift transactions.

【SMM Analysis】As of this week, the weekly net profit of Pr-Nd alloy reached 36,812.4 yuan, with a net margin of 4.1%. Compared with last week, net profit increased 134%, setting a new profit high for the past nearly two years. The main reasons behind this were the decline in raw material costs and relatively high metal quotes.

This week, the rare earth market outside China showed a divergent pattern of “cerium up, the rest down.” Driven by price increases in China and rising ocean freight rates, cerium oxide FOB and CIF prices rose by $55/mt and $60/mt, respectively, while FOB offers for mainstream magnetic material raw materials such as praseodymium, neodymium, dysprosium, and terbium were generally lowered by $3-19.5/kg due to lower prices in China and tight supply caused by export controls. Although limited trading volumes supported premiums in markets outside China, expectations of an industrial slowdown in Europe triggered by the Middle East situation may suppress subsequent demand. On industry developments, Lynas’ Malaysia plant started samarium oxide production ahead of schedule, consolidating its position as the only commercial heavy rare earth separator outside China and advancing its 2030 strategy. In Australia, Terrain discovered high-grade magnetic rare earth ore intervals during drilling at its Western Australia project, highlighting significant resource potential.

[SMM Zinc Morning Comment] Overnight, the most-traded SHFE zinc 2605 contract opened lower with a gap at 22,350 yuan/mt, the intraday low. Subsequently, bulls added to open interest, and SHFE zinc fluctuated upward all the way, touching a high of 22,940 yuan/mt near the close and finally closing up at 22,860 yuan/mt, up 155 yuan/mt, or 0.68%. Trading volume fell to 93,582 lots, and open interest increased by 852 lots to 105,000 lots.

This week, ferrous metals fluctuated at highs, with raw material ore and coking products outperforming steel. Against the backdrop of the escalating conflict in the Middle East, ore and coking products held up well, supported by higher shipping costs and transmission from coal and coke as energy substitutes. In the second half of the week, supply and demand data for hot-rolled coil and rebar were released. The increase in rebar inventory slowed markedly; however, hot-rolled coil demand was lower than the same period last year, and the pace of post-holiday recovery was relatively slow, leaving steel as a whole with limited upward momentum, while futures retreated after rapid rise. In the spot market, trading in the Chinese market was average this week.....

By late March, the consumption driven by dealers' customary post-holiday restocking in the lead-acid battery market had been largely released. Meanwhile, end-use consumption in the e-bike and automotive battery markets was generally mediocre, especially as the impact of the new national standard for e-bikes disrupted supporting orders for new vehicles, and some lead-acid battery enterprises only maintained production based on sales. Lead prices fell this week. In the initial stage, downstream enterprises restocked at lower prices based on demand, but after lead prices fell again in the second half of the week, some enterprises became more cautious in procuring raw lead materials.

How the mighty have fallen. Silver was the talk of the town as it surged by roughly 60% in January trading, hitting highs of just above $120. That is a far cry from where we are trading now, with the precious metal suffering another 5% drop today and poised for six straight daily losses in nine.