[Shanghai Zinc: Suppliers Continued to Hold Prices Firm, Shanghai Spot Premiums Kept Rising] #0 zinc mainstream transaction prices were concentrated at 24,355-24,490 yuan/mt today, Shuangyan saw no transactions, and #1 zinc mainstream transactions were at 24,285-24,420 yuan/mt. In early trade, quotes against the SMM average price were at premiums of 50-60 yuan/mt, while there were no quotes against the futures price yet...

Southeast Asian SHG zinc ingot CIF premiums have continued to decline recently. According to SMM data, as of July 21, premiums in both the Malaysian and Indonesia markets stood at USD$100–128/mt, averaging USD$114/mt, down notably from early July. The decline was mainly driven by weak spot demand. Downstream buyers in Southeast Asia continue to rely primarily on annual contracts, resulting in limited spot restocking demand, fewer new inquiries and scarce concluded transactions. Sellers have therefore gradually lowered offers to facilitate spot sales. Meanwhile, some China-brand zinc ingots have entered the market at lower premiums, with recent transactions and workable levels mostly reported at USD$80–100/mt, placing pressure on mainstream offers. Premium differentials between brands remain. International mainstream and more widely accepted brands continue to command relatively firm offers, but higher-priced deals have become more difficult to conclude amid insufficient buying interest. In the near term, Southeast Asian zinc premiums are expected to remain under pressure as long-term contract coverage stays high and spot demand shows no clear improvement. However, actual transaction levels may continue to vary depending on brand, shipment timing and quotation period.

[Tianjin Zinc: Low Futures Prompt Traders' Firm Price Sentiment] In the Tianjin market, #0 zinc ingot was mainly traded at 24,180-24,390 yuan/mt, Zijin traded at 24,290-24,440 yuan/mt, and #1 zinc ingot traded at around 24,170-24,300 yuan/mt. Zijin was quoted at a premium of 0-30 yuan/mt against the 2608 contract, Hulu zinc was quoted at 25,625 yuan/mt, and #0 zinc ingot was at a discount of 20-110 yuan/mt against the 2608 contract. The Tianjin market was at a discount of around 95 yuan/mt to the Shanghai market.

SMM News, July 20: To deepen industry exchanges, facilitate information channels, and jointly explore development trends and market dynamics in the lead and zinc industry, on July 20, Geng Zhiyao, Senior Analyst for Copper, Lead and Zinc at SMM Information & Technology Co., Ltd. (SMM), Li Hanyu, Senior Analyst for Zinc, and Dai Junxiu, Senior Business Manager, headed to Mengzi Mining and Metallurgy Co., Ltd. for a visit and discussions, and were warmly received by the company’s leaders. During the meeting, the two sides held in-depth and pragmatic discussions on comprehensive market topics across the lead and zinc industry, focusing on core issues such as the global zinc ore supply-demand pattern, the operational logic of mine TCs, supply-demand fundamentals and price trends of zinc ingots and lead ingots, social inventory changes, and import-export flows. At the same time, they communicated in detail and exchanged views on SMM’s metal pricing methodology, spot pricing models for lead and zinc, industry index applications and platform empowerment, enterprises’ raw material procurement status, production operation pace, and overseas market layout plans, further consolidating industry consensus and breaking down information barriers. This visit effectively narrowed the cooperation gap between SMM and Mengzi Mining and Metallurgy, strengthening the foundation of mutual trust. In the future, the two sides will continue to deepen regular exchanges and cooperation, leveraging their respective resources and professional strengths to precisely meet industry needs, share industry data and research results, support stable corporate operations and high-quality industry development, and achieve mutual benefit, win-win outcomes, and coordinated development. About Mengzi Mining and Metallurgy Co., Ltd. Mengzi Mining and Metallurgy Co., Ltd., founded on June 9, 1996, with registered address at No. 66 Tianma Road, Mengzi City, Honghe Prefecture, Yunnan Province, and a registered capital of 51.11 million yuan, is a private mining and metallurgy enterprise integrating resource exploration, mining, beneficiation, and smelting, with a primary focus on comprehensive resource recovery and utilization. With over 20 years of deep engagement in the industry, the company has achieved cumulative operating revenue of nearly 35 billion yuan and paid taxes totaling 3.5 billion yuan. It is a core pillar enterprise in Mengzi City and a key backbone non-public enterprise in Yunnan Province. The company has a well-established industrial layout and complete business portfolio, comprising one main mine, two auxiliary mines, three beneficiation plants, and one smelting branch, along with a wholly owned subsidiary for technology development and multiple wholly owned subsidiaries in trade and supply chain. It has an independent geological exploration team and holds mining rights covering nearly several hundred square kilometers across Honghe, Wenshan, and Lincang prefectures in Yunnan. The main mine, Bainiushan Silver Polymetallic Mine, has proven abundant resources, laying a solid foundation for development. The company’s main products include lead ingots, zinc ingots, antimony ingots, silver ingots, and sulphuric acid, with comprehensive recovery of various valuable metals such as tin, copper, antimony, bismuth, cadmium, iron, sulphur, and gold. The company's operations mainly span the upstream and midstream segments of the lead-zinc industry, with an industry chain encompassing mining, mineral processing, smelting, and trading. It has a sound trade management system and a professional trading team, implementing a major client sales strategy primarily covering procurement and sales. Most of its collaborative suppliers are large state-owned enterprises, publicly listed firms, and industry leaders. Mengzi Mining and Metallurgy Co., Ltd. has six subsidiaries, including three wholly owned subsidiaries and one joint-stock subsidiary, which are mainly engaged in trading and technology businesses. Leveraging its solid industrial strength and robust technological innovation capabilities, the company has garnered numerous prestigious accolades. In 2025, it ranked 41st on the "Yunnan Top 100 Non-Public Enterprises" list, 62nd on the "Yunnan Top 100 Enterprises" list, and 26th on the "Yunnan Top 100 High-Tech Enterprises" list. In 2024, it was awarded the Second Prize of the National Science and Technology Progress Award jointly by the Central Committee of the Communist Party of China and the State Council. It is a renowned local enterprise, a pillar enterprise in Mengzi City, a Yunnan Provincial Green Factory, a National High-Tech Enterprise, and its overall efficiency ranks among the top 5 in the industry. Within Yunnan's lead-zinc smelting sector, the company's actual lead and zinc metal capacity is second only to Yunnan Chihong Zn & Ge Co., Ltd. 1. Lead and Zinc Smelting (1) Zinc Smelting The smelter was completed and put into operation at the end of 2006, with a design scale of 49,000 mt of zinc ingot and 50 mt of indium ingot per year, and comprehensive recovery of valuable metals such as sulphuric acid, silver, copper, and cadmium. Currently, the main products and production capacities of the company's zinc smelting segment are: Main products: 80,000 mt of zinc ingot, 135,000 mt of 98% sulphuric acid (with an actual capacity of up to 170,000 mt), and 80 mt of indium ingot. By-products: 900 mt of copper sulphate, 400 mt of cadmium ingot, 4,000 mt of lead metal from lead-rich wet-process sludge (of which 3,000 mt is self-produced, and 1,000 mt comes from low-grade zinc oxide from the comprehensive plant), and 10 mt of silver metal from silver-rich wet-process sludge. (2) Lead Smelting The company's lead smelting segment, which enables comprehensive recovery of valuable metals such as silver, antimony, and copper, began construction in 2012 and was completed and commissioned in March 2014. The equipment is currently in good condition, and all permits related to safety, environmental protection, occupational health, and fire safety are valid and meet all relevant national requirements. The production capacity for the main products of the company's lead smelting segment is: 60,000 mt of lead ingot, 100 mt of silver ingot, 3,500 mt of antimony ingot, 60,000 mt of sulphuric acid, 1,000 mt of lead matte (copper metal), and 5,000 mt of zinc oxide metal. 2. Lead-Zinc Ore Mining and Processing The Mengzi Mining and Metallurgy mine is located at Bainiuchang Village Committee, Laozhai Township, Mengzi City, Honghe Prefecture, Yunnan Province (referred to as the Bainiuchang Mine). The mining area extends from Niuzuodi River in the north to Yutang Village in the south, and from Miwei Village in the west to Awei Village in the east, covering a mining and exploration rights area of 30 km². The mine is 60 km from downtown Mengzi and 9 km from the Mengzi–Wenshan third-class highway, ensuring convenient transportation. Roads within the mining area connect to the beneficiation plant, villages, and various adits, facilitating smooth access. Since the development of the Bainiuchang mine, essential industrial sites and auxiliary facilities have been gradually established to meet production and daily living needs. These include the mine headquarters, surface facilities and living quarters for Work Areas 1, 2, 3, and 4, the Baiyang No. 8 waste dump, No. 1 and No. 4 waste dumps, and surface material and equipment warehouses. An internal and external road transport system has been developed, providing direct access to all adits. The mining area comprises five ore blocks—Baiyang, Duimenshan, Chuanxindong, Awei, and Miwei—stretching approximately 5 km east–west and 5 km north–south. To date, the company holds three mining rights certificates and four exploration rights certificates for the mine. The Bainiuchang mine (the following are separate ore blocks within the same mining property) 3. Hazardous Waste Processing The enterprise has obtained a hazardous waste operating permit, with an annual treatment capacity of 98,000 mt. It can reprocess slag generated from its own smelting operations. Yunnan Province currently has a total of 69 Comprehensive Operation Permits under the Yunnan Province Hazardous Waste Operation Permit system, of which approximately 15 cover lead- and zinc-related hazardous waste. The company is the largest processor of hazardous waste materials for publicly listed state-owned enterprises such as Yunnan Copper Zinc, Yunnan Chihong Zn & Ge Co., Ltd., and Luoping Zinc & Electricity. 4. Sales and Trading The company operates a well-established trade management system supported by a professional trading team, implementing a key account sales strategy. It primarily handles procurement and sales, with most of its supplier partnerships formed with large state-owned enterprises, publicly listed firms, and industry leaders. Among its downstream clients, Xiamen Xiangyu Logistics Group Co., Ltd. is a state-owned enterprise, a Fortune Global 500 publicly listed firm, and one of China’s largest lead ingot traders. It mainly purchases zinc ingots from the mining and smelting company, with ingot trading accounting for over 70% of its total purchase and sales volume. Honghe Prefecture Hongtou Industrial Co., Ltd. is a state-controlled enterprise under Honghe Prefecture Development and Investment Holding Group Co., Ltd. It is a diversified company engaged in domestic and international trade in goods and technologies, materials supply and distribution, project investment and construction management, and new energy development and construction. It is a strategic trade partner introduced by the company. SMM Contact: Geng Zhiyao Tel: 13818541149

[SMM Zinc Morning Comment] Overnight, SHFE zinc recorded five consecutive bearish candles, with various moving averages above exerting downward pressure and the KDJ indicator's gap widening downwards. Overnight, amid the off-season for consumption, SMM social inventory increased by another 1,300 mt to 269,000 mt, while...

[SMM Morning Meeting Summary: Macro and Fundamentals Side Resonate, LME Zinc Records a Bearish Candlestick] Overnight LME zinc recorded a small bearish candlestick, with the 20-day moving average above forming resistance and the MACD bearish candlestick expanding. The market assessed the renewed hopes for the resumption of US-Iran conflict negotiations, and the US dollar first fell then rose. On the fundamentals side...

【SMM Flash】According to SMM communication, as of this Monday (July 20), SMM seven-region zinc ingot inventory totaled 269,000 mt, unchanged from July 13 but up 1,300 mt from July 16, with China inventory increasing.

[Tianjin Zinc: Many Downstream Quotations, Few Transactions] In the Tianjin market, #0 zinc ingot was mainly traded at 24,220-24,490 yuan/mt, Zijin was traded at 24,340-24,540 yuan/mt, #1 zinc ingot was traded around 24,220-24,410 yuan/mt, Zijin was at a premium of 0-20 yuan/mt against the 2608 contract, Huxin was quoted at 25,620 yuan/mt, #0 zinc ingot was at a discount of 30-120 yuan/mt against the 2608 contract, and Tianjin was at a discount of 90 yuan/mt against Shanghai.

[Traders Continue to Hold Prices Firm and Sell, Shanghai Spot Premiums Rise Significantly]: This week, Shanghai spot premiums rose significantly, up 30 yuan/mt WoW. As of this Friday, ordinary domestic brands were quoted at a premium of 40 yuan/mt against the 2608 contract, while the high-priced brand Shuangyan was quoted at a premium of 130-150 yuan/mt against the 2608 contract..

[Zinc futures price fell during the week, spot premiums up WoW]: Ningbo spot premiums climbed this week, with the overall average price rising 25 yuan/mt WoW. As of Friday, Ningbo spot premiums against the SHFE zinc 2608 contract were quoted at a premium of 10 yuan/mt, and the premium against Shanghai stood at 20 yuan/mt. During the week, the premium against Shanghai consolidated.