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 concentrate TCs remained stable this week, but it was no longer common in the Chinese market for silver-bearing lead concentrates to be extremely hard to find. As silver prices remained in the doldrums and there were no bullish expectations for lead prices for the time being, smelters also expected a decline in by-product revenue. As a result, smelters no longer accepted bargaining over lower TC quotes. Demand for all types of raw materials, including lead concentrates and silver-bearing lead concentrates, was mainly driven by rigid demand, and actual transactions were relatively muted. Silver prices retreated from highs, but market traders still held certain expectations for a catch-up rally in silver prices over the medium and long term. At present, the payable indicator for silver in lead concentrates with various silver contents remained stable, and neither mines nor smelters intended to adjust prices.

SMM, March 19: Overnight, LME lead opened at $1,928.5/mt. During the Asian session, LME lead fluctuated upward, hitting a high of $1,938/mt. It then moved in a narrow range of $1,926-1,935/mt as bulls and bears were evenly matched. Entering the European session, bears took the lead, and LME lead began to fluctuate downward, falling to a low of $1,906/mt, before consolidating in a narrow range of $1,906-1,911/mt. Near the close, LME lead edged up slightly to settle at $1,913/mt, down $13/mt, or 0.67%. Overnight, the most-traded SHFE lead 2605 contract opened at 16,590 yuan/mt. Early in the session, SHFE lead prices surged to a high of 16,675 yuan/mt, then fluctuated downward. Although prices rebounded slightly intraday, the rebound was weak, and lead prices again came under pressure and pulled back, fluctuating rangebound within 16,555-16,590 yuan/mt and touching a low of 16,555 yuan/mt during the period. It finally closed at 16,585 yuan/mt, posting a small bearish candlestick, down 65 yuan/mt, or 0.39%. China mine side, lead concentrate TCs remained weak, with some smelters operating at insufficient rates and market supply staying tight. On the imported ore side, the import window opened and expectations for price hikes emerged, but enterprises showed low willingness to pay, limiting additional volumes. Primary lead: inventory at primary lead smelters continued to decline, while suppliers held firm on quotes and showed a clear reluctance to sell. Secondary lead: as losses widened, most secondary lead enterprises stayed on the sidelines and were reluctant to sell, tightening effective supply in the market overall. Downstream battery plants: after restocking demand was met, the procurement pace slowed down, and downstream demand remained weak. Overall, the market still showed a pattern of weak supply and weak demand. In the short term, lead prices are expected to remain in the doldrums, and close attention should be paid to changes in secondary lead operating rates in late March and shifts in downstream purchasing strength.

This week, lead smelters still indicated that lead concentrate TCs had yet to see a substantive rebound. However, market quotes for silver-bearing lead concentrates with negative TCs had already decreased significantly. Smelters generally remained on the sidelines and purchased cautiously. Coupled with weak fundamentals in the refined lead market, smelters showed low willingness to stock up on raw materials. Silver prices fluctuated within a range and consolidated. After bullish sentiment cooled, apart from slight reductions in the highest quotes for certain silver concentrates or high-silver lead ore with silver content above 2,000 g/mt in physical content, the payable indicator for silver in lead concentrates with other silver content levels generally remained stable.

Entering March, as the bullish sentiment in precious metal prices weakened, some lead smelters became less willing to obtain silver-bearing lead concentrates raw materials by paying lower TCs. Although lead concentrate TCs have yet to see a substantive rebound, smelters generally stated that it remained difficult for mainstream lead concentrate TC quotations to rise in March, but the phenomenon of transactions involving scrambling for ore at extremely low prices has disappeared. As the absolute level of silver prices can still enable smelters to obtain relatively substantial profits, in March smelters did not have expectations of negotiating downward the relevant payable indicator.

According to SMM, both supply and demand in the lead concentrate market declined in February. Smelters in Hunan and Yunnan suspended raw material procurement offers due to maintenance shutdowns during the Chinese New Year holiday. Some producers adopted a cautious purchasing approach towards silver in silver-bearing lead ores, fearing a price decline. The short-term unilateral bullish sentiment for silver has significantly faded. The payable indicator for silver contained in lead concentrates remained stable in the near term. Should silver prices enter a downward trend, smelters may consider negotiating a lower coefficient. Although extreme offers, where smelters actively reduce TCs to "snap up" silver-bearing lead concentrate raw materials, have almost disappeared after the holiday, a few small-scale, low-silver lead mines slightly increased lead concentrate TCs to hedge against silver price downside risks. However, smelters generally indicated that it remains difficult to raise mainstream lead concentrate TC offers in March.

According to SMM, as the Chinese New Year holiday approaches, multiple lead-zinc mines in China will enter the conventional production suspension period for the holiday, lasting from one to two weeks. Additionally, some smelters in north China have started their winter break early, with shutdowns lasting two to three months. The supply of lead concentrates in China declined as expected. In the imported ore market, lead concentrate TCs for February remained at -150 to -160 US dollars per dmt. Due to the Chinese New Year holiday, combined with the completion of winter stockpiling by smelters, maintenance shutdowns, and a pause in quotations, market trading activity weakened. This week, approaching the holiday, smelters generally delayed their raw material procurement needs until after the holiday. Precious metal prices consolidated sideways, and the payable indicator for silver contained in lead concentrates showed no significant changes or negotiations. Some smelters adopted a wait-and-see stance temporarily to avoid risks from declining silver processing margins and lower operational expectations. The situation seen in 2026, where smelters "scrambled" for silver-bearing raw materials at the cost of lower TCs, has eased as the overheated precious metals market cooled down. In the short term, TCs for lead concentrates with medium to low silver content remain generally stable.

[SMM Lead Concentrate TCs Latest Update] Recently, the SMMpb50TC processing fee was adjusted, decreasing by 50 yuan per mt in metal content, now at 450 yuan/mt in metal content, with overall prices ranging from 350 to 550 yuan/mt in metal content. Meanwhile, the SMMpb60TC processing fee also saw a reduction, decreasing by $30 per dmt, currently at -$90/dmt, with prices fluctuating between -$110 and -$70/dmt. According to market sources, despite an expected increase in maintenance for primary lead smelters this autumn, the supply pressure on lead concentrates has not significantly eased. Since mid-to-late August, the supply of imported lead concentrates has become particularly tight, even reaching a point where procurement is difficult, and the TCs for polymetallic lead concentrates have shown extreme conditions. In contrast, the adjustments in TCs for domestically produced lead concentrates have been more stable.

The domestic supply of lead concentrates remains tight. After the price adjustment of imported ore with a Pb60TC, the market has seen a situation where prices are quoted but there is little actual trading. Some traders have quoted prices for silver-lead ore in the range of -$60 to -$80 per dry metric ton (dmt), and smelters are adopting a cautious stance with low purchase intentions. In the domestic market, the routine maintenance of some smelters in late June and the increase in production at lead-zinc ore projects in Xinjiang, Tibet, and other regions have slightly alleviated the supply deficit pressure of lead concentrates in some local areas. Smelters in multiple regions, including Inner Mongolia and Henan, have not shown any intention to adjust the domestic Pb50TC prices. However, the expected insufficient supply of imported ore, combined with the recent tight supply of other lead-bearing materials and crude lead, is expected to persist, and there is no anticipated rebound in lead concentrate TCs in the short term. Regarding the silver pricing coefficient in lead concentrates, despite silver prices reaching new highs in June, smelters generally indicate that there is no room for further increases in the silver pricing coefficient in lead concentrates after several rounds of price hikes. The silver pricing coefficient in various types of silver-bearing lead concentrates has remained unchanged for the time being. 》Click to view the SMM Metal Industry Chain Database