SHANGHAI, Sept. 29 (SMM) – TC of domestic lead concentrate (50%) is up 300 yuan to 2,300-2,600 yuan per mt (Pb content) in October, the highest of the year, Shanghai Metals Market data show.
“Low utilization rate and high inventories of ore at domestic primary lead smelters are main factors behind the rise in TCs for domestic ore,” SMM lead analyst says.
The average utilization rate at major domestic primary lead smelters is 59% during the first eight months of 2015, lower than 60% during the same period of 2014, SMM survey shows.
The rate, rose to 65.26% in August, but still below 67.74% in August 2014, according to SMM survey.
“Higher profits from imported ore, reaching 1,250 yuan per tonne (Pb content) last week, also undermine demand for domestic materials,” SMM points out.
The preference for imported ore and falling inventories at the Port of Lianyungang combined to send down to $165-180 per dmt in October, the lowest since this May, SMM adds.
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