[Lead Smelter Updates] It was reported that Yuguang Gold and Lead Group stated on an interactive platform that Ye Group holds the mining rights to the Shuikoushan lead-zinc mine and the Baifang copper mine, with 3 mines (the Kangjiawan mine and the lead-zinc mine both fall under the Shuikoushan lead-zinc mine mining rights) and 1 beneficiation plant, possessing an annual mining and beneficiation capacity of 860,000 mt of raw ore. Its captive mines can produce lead concentrates, copper concentrates, gold concentrates, and other mineral products, providing raw material support for the company.

Lead concentrate TCs remained generally stable this week. The weekly average TC for domestic Pb50 was quoted at 300 yuan/mt Pb, while the weekly average TC for imported Pb60 was quoted at -$135/dmt. Smelters maintained mainstream quotations within the range of -$150 to -$130/dmt. As the SHFE/LME lead price ratio continued to decline, losses on lead concentrate imports widened, and smelters showed little enthusiasm for negotiating purchases, resulting in minimal actual transactions for imported ore. The biggest unexpected impact on the precious metals market this week came from the issuance of Peru's energy crisis decree. Silver prices experienced wild swings, but the price fluctuations in precious metals have not yet transmitted to the TC quotation stage for imported ore or the silver payable stage for lead concentrates. Some smelters indicated that there are no expectations of supply disruptions from Peru-sourced lead concentrates in the short term. The silver payable indicator remained stable, mainly because buyers and sellers had doubts about the sustainability of the silver price rebound, and consensus could still be reached on maintaining the current payable indicator. Although zinc concentrate TCs saw significant reductions in May due to factors such as a sharp rise in sulphuric acid prices, lead concentrate TC quotations saw almost no reduction during the same period. Multiple mining enterprises stated that lead concentrate TCs have almost no room for further decline.

Recently, the lead concentrates market has remained relatively stable amid a confluence of macro and industry factors. Although sulphuric acid prices surged significantly and silver prices experienced wild swings driven by events such as the US-Iran peace talks and the Peruvian energy crisis, the transmission of these factors to the silver-bearing lead concentrate TCs space was limited, and lead concentrate TCs remained broadly stable overall.

Spot silver surged 7.07% on May 11, breaking above $86/oz. Peru, a leading global silver producer, issued an energy crisis emergency decree on the same day. With mining operations highly dependent on stable energy, the shortage is expected to reduce global marginal silver supply, further boosting prices amid low inventory levels.

[SMM Precious Metals Market News] Market sources indicated that Peru had issued an emergency decree on the energy crisis. Given that Peru is extremely rich in mineral resources, with its gold, silver, copper, and other mineral reserves ranking among the top in the world, amid the ongoing energy crisis, some small and medium-sized mines with weaker risk resilience, as well as projects already operating at high costs, may face production cuts or even temporary shutdowns. Therefore, close attention should continue to be paid to the supply dynamics of imported silver concentrates and silver-bearing lead concentrates from the Peru region.

Lead concentrate TCs remained generally stable this week. Some mining enterprises indicated that they had lowered zinc concentrate TCs in May due to market conditions and a sharp rise in sulphuric acid prices, but the quoted lead concentrate TCs for concentrates produced and sold during the same period were not adjusted. A few suppliers holding lead concentrates rich in zinc and copper adjusted the starting payable or payable indicator for copper and zinc contained in lead ore, but did not directly lower their lead concentrate TC quotations. Regarding imported ore prices, smelters maintained mainstream quotations of -$150 to -$130/dmt. Since late April, the SHFE/LME lead price ratio has continued to decline, losses on imported lead concentrates have widened, and smelters showed little enthusiasm for negotiating and purchasing. Regarding the silver payable indicator for lead concentrates, as silver prices have yet to break out of their sideways range and macro influences remain complex, the precious metals trend remains unclear. Both buyers and sellers remained cautiously on the sidelines, and the silver payable indicator for lead concentrates across various silver content levels remained stable.

Lead concentrate TCs remained generally stable this week. Some mine enterprises indicated that lead concentrate TCs had almost no room for further decline, while imported ore prices were still mainly quoted at -$150 to -$130/dmt. Affected by the recent tight supply-demand conditions of zinc concentrates and copper concentrates, some suppliers of lead concentrates rich in zinc and copper adjusted the pricing methods for copper and zinc. Although the comprehensive value of such copper- and zinc-rich lead concentrates was raised, the pricing of lead and precious metals within them remained unchanged, and the silver payable indicators for lead concentrates with various silver contents in the market remained firm.

[Lead-Zinc Ore Market Dynamics] A project advancement meeting for the Feihushan lead-zinc mine was held this week in Huzhong District, Heilongjiang, chaired by Guan Jingjun, Deputy Secretary of the District Party Committee and District Governor. The total investment for the Feihushan lead-zinc polymetallic mine development project is expected to be 396.7111 million yuan, with all required funds to be self-raised by the enterprise. Upon completion, the project will have an annual capacity of 300,000 mt of raw ore (including 200,000 mt of lead-zinc ore and 100,000 mt of iron ore). The mineral processing products will be lead concentrates, zinc concentrates, and iron ore concentrates, with a service life of 14 years (excluding a 4-year construction period).

On March 27, Jinhui Mining disclosed its 2025 annual report. The report showed that in 2025, the company produced 71,783.8 mt in metal content of zinc concentrates, 22,508.09 mt in metal content of lead concentrates, and 30,323.88 kg of by-product silver. During the reporting period, the company completed the acquisition of the remaining 51% equity in its subsidiary Gansu Haosen Mining Co., Ltd., achieving 100% ownership of the company. The mining rights consolidation of the Jiangluo mining area was fully completed, with the mining rights held by the company in the Jiangluo mining area consolidated into its wholly-owned subsidiary Xicheng Mining, achieving unified ownership.

In April, the supply of lead concentrates in the Chinese market was slightly looser compared to March. Smelters indicated that quotations for lead concentrates of different qualities varied significantly in the market. After some lead concentrate prices saw slight increases at the beginning of the month, lead concentrate prices remained stable this week. Although smelters attempted to negotiate on the silver payable indicator, apart from a few cases where silver-bearing lead concentrates with silver content above 2,500 grams per mt in physical content saw slight reductions in the previously raised coefficients, traders and mine enterprises generally preferred to raise TCs instead of adjusting the payable indicator. As a result, the silver payable indicators for lead concentrates with various silver contents in the market did not show significant changes.