Smelters Actively Snap Up Domestic Ore, Zinc Concentrate TCs Continue to Fall [SMM Zinc Concentrates Weekly Review]

SMM News, August 14:

On a weekly basis, the SMM domestic Zn50 weekly average TC fell by 400 yuan/mt Zn WoW to -1,550 yuan/mt Zn, and the SMM Imported Zinc Concentrate Index fell by $3.88/dmt WoW to -$107.38/dmt.

Domestic ore market. Recently, domestic ore disruptions persisted, and smelters were actively purchasing domestic zinc concentrates. The overall supply-demand tightness remained unchanged, and TCs in many regions across China continued to decline. According to market sources, a mine in northwestern China recently tendered its August zinc concentrates at a mine EXW price of around -2,000 yuan/mt Zn. In addition, domestic smelters continued to compete aggressively for ore, and in some regions, delivered-to-smelter deals for high-grade zinc concentrate were heard to have fallen below -2,000 yuan/mt Zn. At ports, Gamsberg zinc concentrate was heard traded at around -2,000 yuan/mt Zn.

Imported ore market. Offers in the imported zinc concentrate market increased recently, with trader offers generally around -$120 to -$130/dmt. However, as smelters gave priority to domestic zinc concentrates, overall imported ore transactions remained relatively limited. According to market sources, port Antamina zinc concentrate was recently heard traded at a TC of around -$120/dmt, while some South American high-grade ore was offered at -$120 to -$130/dmt. Overall import TCs continued to decline. Meanwhile, the latest New Century zinc concentrate tender result was released, with the winning bid price heard at around -$150/dmt for Q4 shipment and a cargo volume of about 10,000 mt.

This week, SMM zinc concentrate inventories at China's main ports totaled 244,000 mt in physical content, down 36,000 mt WoW, with Fangchenggang port inventories accounting for the bulk of the decline.