[SMM Silver Express] SMM July 31: SMM 1# silver ingot production stood at 1,556 tonnes in July 2026, down 0.38% month-on-month and 3.59% year-on-year, with cumulative growth of 5.3% in the first seven months. Producer inventories rose 22.2% month-on-month. The decline was mainly due to ongoing maintenance at copper, lead and zinc smelters, with some inventories reserved for processing trade exports.

[Frequent disruptions in China’s supply side; TCs fell in many regions of China in August]: On a weekly basis, the SMM Zn50 domestic weekly average TC fell 400 yuan/mt Zn WoW to -1,150 yuan/mt Zn, and the SMM Imported Zinc Concentrate Index fell $3.5/dmt WoW to -$98.13/dmt. On a monthly basis, the SMM Imported Zinc Concentrate Index fell $17.01/dmt MoM in July to -$89.81/dmt....

According to China Customs data, China imported 2.7616 million tonnes (gross weight) of zinc concentrate during January–June 2026, up 8.98% year on year, with overall imports posting modest growth compared with the same period last year.

According to the latest China Customs data, China imported 362.8 kt (gross weight) of zinc concentrate in June 2026, down 8.51% MoM (or 51.1 kt) but up 9.97% YoY. Cumulative imports for January–June 2026 reached 2.7616 million tonnes (gross weight), representing a 8.98% increase from the same period last year.

【Domestic Zinc Concentrate Market】According to SMM, sulfuric acid prices across many regions in China have recently remained elevated at RMB 1,500–1,900/mt, continuing to provide strong profit support for domestic zinc smelters. The domestic zinc concentrate market remained tight in July, while the domestic-to-import price ratio stayed unfavorable, prompting smelters to continue prioritizing purchases of domestic zinc concentrate. Mainstream domestic treatment charges (TCs) have now declined to -500 to -1,000 yuan/metal tonne.

[Smelters Focus on Domestic Ore Procurement; TCs Continue to Decline in Many Regions]: On a weekly basis, the average SMM Zn50 domestic weekly TC fell 150 yuan/mt Zn WoW to -750 yuan/mt Zn, and the SMM imported zinc concentrate index dropped $6.85/dmt WoW to -$90.15/dmt....

Affected by the 10th typhoon this year, "Maysak," many areas in Guangxi were hit by continuous heavy rainfall. Places including Fangchenggang, Qinzhou, Guigang, and Nanning experienced rainstorms to heavy rainstorms, with locally extreme rainstorms, causing severe waterlogging in some urban areas, surging river levels, and risks at multiple reservoirs. Based on this, SMM conducted a survey of zinc smelters in Guangxi and learned that production has not been affected yet, but severe port waterlogging has hindered the transportation of raw materials and finished products. It is also learned that in July, some lead-zinc mines in Guangxi have already suspended production for maintenance due to the impact of the rainy season.

According to SMM statistics, in June 2026, SMM China refined zinc production fell by around 18,000 mt, or over 3.2%, MoM and 3.8% YoY. Cumulative production from January to June increased by over 4% YoY, falling short of expectations...

[Covering Seven Major Production Regions! SMM Launches Daily Provincial Profit Indicator for Zinc Smelting Using 40% Imported Ore] In May 2026, SMM added daily profit models for domestic ore in the eight major zinc smelting regions of Inner Mongolia, Henan, Gansu, Hunan, Guangxi, Yunnan, Shaanxi, and Sichuan for market reference. ...

[Zinc concentrate TCs remain low, keep watching subsequent smelter operations]: From weekly data, the SMM Zn50 domestic weekly TC average fell by 150 yuan/mt Zn WoW to -200 yuan/mt Zn, and the SMM import zinc concentrate index fell by $0.56/dmt WoW to -$71.76/dmt..