China Sets New Zinc Processing Fees Amid Industry Concerns

China Zinc Smelters Purchasing Team (CZSPT) has established new processing fees for domestic zinc concentrate for the first quarter of 2025, ranging between 2,000 and 2,500 yuan per metric ton (approximately $281.57 to $352 USD), according to a statement from state-backed research firm Antaike on Tuesday.

The fees for imported zinc concentrate have also been set between $10 and $30 per dry ton. The announcement highlighted discussions among industry players regarding measures to "strengthen industry self-discipline" amidst concerns over zinc smelting and processing fees, which continue to deviate significantly from production costs.

Back in August, major Chinese zinc smelters agreed to adjust planned maintenance schedules and postpone the commissioning of new production capacity. This decision was motivated by declining ore processing prices due to limited ore supply, which has adversely affected profitability within the sector. The group also discussed the possibility of implementing a floor pricing mechanism for zinc concentrate treatment charges to stabilize industry conditions.