[Frequent Supply Disruptions; Imported TCs Continued to Decline]: Weekly data showed that the average weekly TC for SMM Zn50 domestic remained flat at 1,550 yuan/mt in metal content, while the SMM Imported Zinc Concentrate Index fell by $8.37/dmt MoM to $15.38/dmt...

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.

[TCs Rose in Some Regions in March, Focus on Subsequent Negotiation Results]: On a weekly basis, the SMM Zn50 domestic weekly TC average increased by 50 yuan/mt in metal content from the pre-holiday level to 1,550 yuan/mt in metal content, while the SMM imported zinc concentrate index decreased by $0.6/dmt from the pre-holiday level to $23.75/dmt...

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.

[Smelter procurement sentiment remained low, TCs held steady in multiple regions]: On a weekly basis, the SMM Zn50 domestic weekly TC average was flat MoM at 1,500 yuan/mt in metal content, while the SMM imported zinc concentrate index fell $0.62/dmt MoM to $24.88/dmt...

In the Union Budget 2026 presented on February 1, 2026, the Indian government increased the Tax Collected at Source (TCS) on the sale of coal and lignite from 1% to 2%. This measure is part of a broader fiscal strategy to simplify tax collection while managing the massive scale of domestic production. The change is expected to slightly adjust the procurement costs for Indian steelmakers who remain heavily reliant on coal-fired blast furnaces for their 164.9 million ton annual steel output.

[SMM Flash News] This week, domestic zinc concentrate TCs remained stable, while imported zinc ore TCs increased MoM. Specifically, the average weekly SMM Zn50 domestic TC remained unchanged MoM at 3,600 yuan/mt (metal content), and the SMM Imported Zinc Concentrates Index rose by $2.65/dmt MoM to $53/dmt.

[SMM Analysis: Zinc Concentrate TCs Growth Rate Slowed Significantly in May; Are TCs Approaching Their Peak?] In May, SMM's domestic monthly zinc concentrate TCs rose by 50 yuan/mt to 3,500 yuan/mt MoM, while the monthly TCs for imported zinc ore increased by $5/dmt to $45/dmt. The negotiation period for domestic zinc concentrate TCs in May recently reached its peak, but the negotiations between the two parties were at a stalemate. Compared to earlier months this year, the growth rate of domestic zinc concentrate TCs in May slowed significantly...

[Port Inventory Increased, Domestic Zinc Concentrate TCs Continued to Rise]: This week, zinc concentrate TCs increased. Specifically, the weekly average domestic TC for SMM Zn50 rose by 200 yuan/mt (metal content) to 2,150 yuan/mt (metal content) MoM, while the weekly average imported TC for SMM Zn50 increased by $10/dmt to -$10/dmt.

Recent decline in TCs and RCs due to strengthening demand for copper concentrate and shortage of recycled copper feedstock.