SHANGHAI, Aug. 14 (SMM) - Some zinc smelters are unwilling to place orders for imported zinc concentrate after the depreciation of yuan, SMM learns. Some others also refrain from importing zinc now that they have built stocks.
Profit from imported zinc concentrate expanded 210 yuan to 1,000 yuan per tonne (zinc content) above domestic zinc concentrate this past week, SMM data show. TCs for imported zinc concentrate (50%) were stable between $200-210 per dry metric tonne (DMT), with some quotes below $200.
Some mines held back goods due to the sluggish zinc price, and a few went so far as to suspend production recently. Operating rates in Sichuan’s Liangshan remained low despite alleviated environmental protection restrictions. Some local producers will unlikely restart this year. The Low zinc price also kept some traders off the market.
Domestic zinc concentrate TCs will remain stable, SMM predicts. Smelters are unwilling to lower domestic zinc concentrate TCs against sluggish zinc prices, despite supply tightness in some regions.
TCs for domestic zinc concentrate (50%) were steady at 5,300-5,400 yuan per tonne (zinc content) this past week, with some quotes around 5,200 yuan.
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