As we near the midpoint of the year, zinc concentrate treatment charges (TCs) have repeatedly tumbled to historic lows. As of June 5, the average TC for domestic zinc concentrate fell to 50 yuan per metric ton of metal content, while the TC for imported zinc concentrate dropped to -70.75 US dollars per dry metric ton.

[Ore Supply Tightness Remains Unchanged, Domestic and Imported Zinc Concentrate TCs Continue to Decline]: Based on weekly data, the SMM Zn50 domestic weekly average TC fell 250 yuan/mt Zn WoW to 150 yuan/mt Zn, and the SMM imported zinc concentrates index dropped $7.19/dmt WoW to -$63.44/dmt.

[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......

[Zinc Concentrate TCs in and Outside China Continued to Decline, with Attention on Subsequent June Pricing]: Looking at weekly data, the SMM Zn50 domestic weekly average TC decreased 150 yuan/mt Zn WoW to 400 yuan/mt Zn, and the SMM imported zinc concentrate index fell $2.05/dmt WoW to -$56.25/dmt.

[Domestic Ore Market Tightness Persists, Zinc Concentrate TCs Continue to Decline]: Based on weekly data, the SMM Zn50 domestic weekly average TC fell 150 yuan/mt Zn WoW to 550 yuan/mt Zn, and the SMM imported zinc concentrate index dropped $8.45/dmt WoW to -$54.2/dmt.

[Peru's "Gas Shortage" Energy Crisis Disrupts Zinc Concentrates Supply] Due to a rupture in Peru's natural gas pipeline (Megantoni district, Cusco province), the country fell into a "gas shortage" predicament, with electricity production and fuel supply severely affected. State-owned oil company Petroperú plunged into a serious financial crisis, and Peru is facing a severe nationwide energy crisis.

[Some Mine Tender Prices Continued to Decline, Awaiting May Negotiation Pricing]: Based on weekly data, the SMM Zn50 domestic weekly average TC fell 200 yuan/mt Zn WoW to 850 yuan/mt Zn, and the SMM imported zinc concentrates index dropped $3.12/dmt WoW to -$39.25/dmt...

As of April 24, the average domestic zinc concentrate TC dropped to 1,050 yuan/mt in metal content, and the imported zinc concentrate TC fell to -$36.13/dmt. Overall, zinc concentrate TCs continued to decline, with imported zinc concentrate TCs deepening further into negative territory. In May, domestic zinc concentrate TCs in multiple regions plan to further drop to three-digit levels.

[Zinc Concentrate TCs Continue to Fall, Awaiting May Pricing Results]: On a weekly basis, the SMM Zn50 domestic weekly average TC fell $200/mt Zn WoW to 1,050 yuan/mt Zn, while the SMM imported zinc concentrates index dropped $7.63/dmt WoW to -$36.13/dmt...

As of April 3, the average domestic zinc concentrate TC dropped to 1,350 yuan/mt in metal content, and the imported zinc concentrate TC fell to -$14.5/dmt, with the import market once again entering negative territory. After Chinese New Year, domestic mines gradually resumed production — so why did zinc concentrate TCs decline again in April?