China Lead Concentrate TCs Set for Losses with Inventories Falling at Smelters

SHANGHAI, Mar. 11 (SMM) – TCs for Chinese 50% lead concentrate are expected to drop in near foreseeable future with inventories digested by lead smelters, SMM learns.   

Inventories at smelters will gradually fall back due to three factors, namely delay in operation restart at miners, loss-making imported concentrate and high operating rates at lead producers.

Some miners delayed in resuming production in 2016, hurt by safety and capital factors, leading to limited supply in market.

Profits for imported materials inverted to losses this week, 300 yuan per tonne (Pb content) below domestic concentrate. And some offers for imported concentrate were as low as $ 130 per dry metric tonne. This, coupled with low silver multiple prices, made smelters reluctant to buy loss-making imported materials.

TCs for domestic concentrate stabilized at 2,500-2,800 yuan per tonne (Pb content) this week. And those for imported concentrate (Pb 60%, Ag < 1,000 g) were mainly at $ 140-160 per dry metric tonne.

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