2025 zinc benchmark TC: a new era or a strategic move? Report

Insight 10 April 2025

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Report summary

The 2025 annual zinc benchmark contract treatment charge is understood to have been settled. Terms fell dramatically to less than half of last year’s figure, which was itself a record low in real terms. Is this the culmination of a process underway since 2018 – the move to be more like copper with annual contract TCs rooted solely in the concentrate market balance, with greater volatility? Or is it also a strategic move by lower-cost smelting groups to accept short-term pain for long-term gain, by accepting a treatment charge that could lead to the permanent closure of high cost rest of world smelting capacity?

A new era or smelter-led rationalisation, or both?
The new era fully established
Implications for smelters in 2025
and/or strategic move for smelters to trigger rationalisation?
Implications for miners

Tables and charts

This report includes the following images and tables:

Zinc annual contract benchmark treatment charge
TCs used to be closely correlated with zinc price. Value share of paid zinc price was a useful indicator of future TCs when considered with other negotiating points
Realised annual benchmark TC and China spot TCs comparison