[SMM Analysis] Can Indonesia import sulfuric acid as a substitute after the sulfur restriction?

Korea Zinc recently disclosed plans to develop a large-scale integrated non-ferrous smelter in the US, following a conditional commitment involving the US Department of Defense and the Department of Commerce. Recent developments suggest the US is stepping up efforts to strengthen supply chain security across zinc, critical minerals and copper, using a mix of domestic investment, cooperation with allies and trade policy tools.

Nyrstar said it has received a non-binding, conditional letter of support from Export Finance Australia (EFA) for financing its antimony production project at Port Pirie, South Australia, as well as investments supporting the production of critical and strategic metals at its Australian sites. The support is subject to mutually agreed commercial terms and further due diligence, including environmental, social, financial, legal and regulatory approvals. The company is currently developing a pilot plant at Port Pirie, expected to be completed in early 2026, enabling initial batches of antimony metal to be produced and exported in the first half of 2026. Subject to further support and upgrades, Nyrstar said the project could scale up to around 5,000 tonnes of antimony metal per year by 2028, equivalent to roughly 15% of global supply. Antimony, which can be recovered as a by-product of lead processing, is regarded as critical for defence, AI and data centres, energy and consumer goods in both Australia and the US. Port Pirie is Australia’s only lead refining facility. Nyrstar said the project has been included in the pipeline of critical minerals initiatives under the US–Australia Critical Minerals and Rare Earths Framework, highlighting its role in securing antimony supply for Australia and the US. In addition, the company is exploring the potential production of bismuth and tellurium at Port Pirie, as well as germanium and indium at its Hobart Zinc Works.

On November 28, 2025, Australia’s Fair Work Commission (FWC) published the results of a protected industrial action ballot, showing that union members at Nyrstar’s Port Pirie smelter in South Australia have voted to authorise industrial action. Potential actions may include stoppages and stop-work meetings, as well as bans on overtime and work outside ordinary hours. According to foreign media reports, subsequent measures could include bans on shift changes and overtime, although whether the situation escalates into a full stoppage will depend on formal strike notice from the unions and the progress of negotiations with the company. Port Pirie is primarily a lead and polymetallic smelting operation, with annual refined lead capacity of around 180 kt. Previously, on August 5, 2025, Nyrstar received approximately A$135 million in funding from the Australian federal government and the governments of South Australia and Tasmania, aimed at supporting operations at Hobart and Port Pirie and advancing restart and critical metals development plans. The move has also reignited debate over government financial support for struggling smelters. At present, the unions have not issued formal strike notice. Nyrstar said it is continuing discussions with relevant parties. SMM will continue to monitor developments.

The Hydrogen Council's "Hydrogen Insights 2024" report reveals a significant expansion in the global hydrogen industry, with over 70 countries announcing 1,572 clean hydrogen projects, a more than sixfold increase from the 228 projects in 2020. These projects plan electrolyzer capacity exceeding half a terawatt, with a total value of approximately $680 billion, but only $75 billion has reached final investment decision (FID), indicating that project implementation progress still needs acceleration. Regionally, Asia and the Middle East are the most concentrated areas for green hydrogen projects, with China accounting for about half of the global installed electrolyzer capacity. Among these, the Sinopec Xinjiang Kuqa Green Hydrogen Plant has commenced operation, utilizing a 260 MW renewable power electrolyzer to supply hydrogen to refineries. It is the world's largest green hydrogen facility and serves as a critical foundation for China's plan to exceed 100 GW of electrolyzer capacity by 2030. Flagship projects in Saudi Arabia, the US, and Europe are leading construction efforts. For example, Saudi Arabia's NEOM project uses 4 GW of wind and solar power to drive a 2.2 GW electrolyzer, producing approximately 600 mt of hydrogen per day, and completed financing for construction in 2023. The US ACES Delta project combines a 220 MW electrolyzer with 300 GWh of underground salt cavern storage, reaching FID in 2022. Europe has over 400 projects concentrated in countries such as Germany, Spain, France, and the Netherlands, with projects like Shell's Holland Hydrogen I advancing, while emerging projects like Hyphen in Namibia and Haru Oni in Chile reflect geographical diversification. However, the industry still faces multiple challenges, with cost, infrastructure, and offtake issues being prominent. Trafigura's Port Pirie project in Australia was suspended due to cost overruns and lack of commercial offtake agreements, while the Whyalla hydrogen project was canceled following the closure of the steel plant. In Europe, only 4% of announced capacity is under construction, with some projects delayed due to equipment shortages and slow approvals. Currently, operational projects globally are limited. Apart from the Xinjiang Kuqa plant in China, only a few projects, such as the Puertollano plant in Spain and the Haru Oni pilot in Chile, are in operation. Overall, the industry is in the initial stage of industrial-scale green hydrogen production, laying the foundation for future global clean energy commodity trade.

The SMM Imported Zinc Concentrate Index for this week is $82.25/dmt, with a 4.44% WoW increase. The SMM Imported Lead Concentrate average spot TC for this week is $-60/dmt, unchanged WoW.

[Smelters continue to sign contracts, domestic TCs remain stable]: This week, domestic zinc concentrate TCs remained stable, while imported zinc concentrate TCs increased MoM. Specifically, the average weekly SMM Zn50 domestic TC price remained unchanged MoM at 3,900 yuan/mt (metal content), and the SMM imported zinc concentrate index rose 3.5 US dollars/dmt MoM to 82.25 US dollars/dmt. ....

On August 5th, critical metals producer Nyrstar announced it has secured A$135 million in transitional funding from the Australian federal, South Australian, and Tasmanian governments to sustain operations at its multi-metals smelters in Port Pirie and Hobart, and to advance redevelopment and critical metals projects. The funding follows broader industry calls for government support amid declining smelter margins, including from Glencore’s Mount Isa operations. Combined with continued investment from Trafigura, the support will allow Nyrstar to maintain operations while accelerating researches into producing germanium and indium in Hobart and antimony and bismuth in Port Pirie, with an antimony pilot plant as the initial priority. The package also includes funding for major maintenance and infrastructure upgrades, including furnace and wharf investments in Hobart and asset integrity works in Port Pirie. As Australia’s only lead refiner and largest zinc smelter, Nyrstar contributes around A$1.7 billion to the national economy annually, directly employing over 1,400 workers and supporting more than 6,600 indirect jobs. The company plays a key role in safeguarding Australia’s sovereign processing capacity. Nyrstar has committed to ongoing investment in its workforce and facilities while collaborating with governments on long-term strategic pathways. Zinc production in Hobart has been cut by 25% since April 2025, with no clear restart timeline.