Executive Interviews

Asian Metal: Mr. Kuang, welcome to our interview column. To begin with, could you please give us a brief introduction to your company’s main structure and business focus?

Mr. Kuang: Our company integrates upstream mining of non-ferrous metals with commercial trading. We currently operate three mines—two lead-zinc-silver mines and one tin-tungsten mine. Our business mainly focuses on lead, zinc, copper, tin, tungsten, bismuth, and lithium concentrates, as well as the procurement and sales of bismuth ingots and indium ingots. Zinc concentrate accounts for about 50% of our total revenue, with domestic procurement and sales representing around 90% and imports about 10%. Our headquarters is located in Chenzhou, Hunan Province, and we also have offices in Yunnan, Guangxi, Fujian, Qinghai, Tibet, Henan, Hebei, and Inner Mongolia, staffed with professional teams to ensure efficient business operations across regions.

Asian Metal: What are your company’s annual production and sales volumes of zinc concentrate?

Mr. Kuang: This year, our zinc concentrate output is expected to reach around 40,000t. In 2024, our total zinc concentrate sales were close to 170,000t, and for 2025, we expect total sales to be around 150,000t.

Asian Metal: What changes have you observed in China’s zinc concentrate supply in 2025?

Mr. Kuang: Since early 2025, China’s zinc concentrate supply has shifted from gradually loosening to continuously tightening. This is mainly due to three factors: First, the SHFE/LME zinc ratio has continued to weaken, falling from around 8.4 at the beginning of the year to about 7.5 now; Second, imported concentrate TCs have remained significantly lower than domestic levels, with a price spread of more than RMB 1,000/metal tonne, leading to substantial losses for most import businesses and restricting overseas inflows; Third, as the winter stockpiling season approaches, market replenishment demand has increased, further tightening supply.

Asian Metal: What are the main source countries of your imported zinc concentrate? How do you typically cooperate with overseas miners?

Mr. Kuang: We mainly import zinc concentrate from Africa, South America, and Australia. Our purchases are generally conducted in the spot market.

Asian Metal: With overseas mines restarting this year, imported TCs have risen significantly. How is the profitability for importers?

Mr. Kuang: As overseas mines have resumed production in 2025, imported zinc concentrate TCs have risen from around -USD40/t at the end of 2024 to about USD60/t now. However, due to fluctuations in the SHFE/LME ratio, most domestic importers have still faced losses in the second half of the year.

Asian Metal: China tightened the limits on harmful elements in imported zinc concentrate from September 1. Has this affected your company’s import volume or cost? Will it significantly impact China’s overall imports?

Mr. Kuang: So far, the new limits have not had a major impact on our company. In my opinion, the impact on China’s overall zinc concentrate import volume is also limited.

Asian Metal: How would you describe the competitive landscape of the domestic zinc concentrate trading market? What challenges do you observe?

Mr. Kuang: Zinc concentrate supply has tightened this year, and competition in the domestic market has intensified. Prices have become increasingly transparent, and profit margins are further compressed.

Asian Metal: What is your outlook for zinc concentrate TCs in the fourth quarter? What is driving this trend, and what will be your trading approach during this period?

Mr. Kuang: We expect domestic zinc concentrate TCs to decline in the fourth quarter. By the end of the year, domestic TCs may fall to around RMB2,000/metal tonne, and imported TCs may drop below USD100/t. Although port inventories are still relatively sufficient, most holders of imported cargoes have low selling interest due to the weak ratio. On one hand, the market generally reflects a tight supply of materials; on the other, as winter stockpiling approaches, smelters have become more active in procurement, reinforcing sellers’ reluctance to release cargoes. Our trading focus in the fourth quarter will remain on raw material procurement — buying more and selling less.

Asian Metal: What are your company’s future development plans?

Mr. Kuang: We will continue to deepen our focus on upstream resources and increase investment in mining projects.

Asian Metal: Thank you for your insights, Mr. Kuang. We wish your company continued success.

Mr. Kuang: Thank you.