Zinc Concentrate TCs in and Outside China Continued to Decline, Attention on Subsequent June Pricing [SMM Zinc Concentrates Weekly Review]

SMM May 22:

Looking at weekly data, the SMM Zn50 domestic weekly average TC decreased 150 yuan/mt Zn WoW to 400 yuan/mt Zn, and the SMM Imported Zinc Concentrate Index fell $2.05/dmt WoW to -$56.25/dmt.

Domestic ore market. As month-end approached, the rush-buying sentiment in the domestic ore raw material market remained strong. Smelters mostly prioritized purchasing domestic zinc concentrates, and zinc concentrate TCs in multiple regions across China continued to decline. It was learned that a mine in North China released its zinc concentrate tender results this week, with the self pick-up tender price at around 1,450 yuan/mt Zn (including a 20/80 profit-sharing arrangement), with by-product metals not priced separately.

Imported ore market. Few traders shipped imported ore this week. Smelters had restocked earlier, and overall market transactions were sparse this week. It was learned that recently, CIF offers for imported zinc concentrates with by-product metals reached -$70 to -$60/dmt, with by-product metals priced separately, and the decline in imported zinc concentrate TCs showed no sign of stopping.

This week, SMM zinc concentrate inventory at main ports in China totaled 260,000 mt in physical content, down 23,000 mt in physical content WoW, with Fangchenggang port inventories contributing the main decrease.