San Juan de Nieva zinc operations. Credit: Glencore
Zinc has been the consistent under-performer of the London Metal Exchange (LME) base metal pack since the start of 2025 and this year’s benchmark smelter treatment charge reinforces the galvanizing metal’s bear narrative.
Korea Zinc and Canadian miner Teck Resources have agreed annual fees of $80 per metric ton for the smelter to process Teck’s zinc concentrates into refined metal, according to Bloomberg.
That’s a sharp drop from last year’s benchmark of $165 per ton and the lowest outcome in at least 50 years, according to consultancy CRU.
Given smelters get to charge more in times of raw materials over-supply and less during periods of scarcity, this year’s super-low benchmark might at first glance seem a super-bullish signal.
But only relative to last year’s benchmark deal.
Relative to spot treatment charges, which turned…
