SHANGHAI Aug.31 (CBI China)--Supplies of zinc concentrates remained sufficient while shortages of lead concentrates in the Chinese domestic market eased slightly. The latest treatment charges (TC) for lead concentrates were in the RMB 3,000-3,500/mt range, and near the RMB 8,000/mt level for zinc concentrates.
Chinese lead smelters preferred to buy domestic lead concentrate although TC of imported lead concentrates rose to USD 220/mt. TC of imported zinc concentrates have already risen above USD 350/mt (equivalent to zinc concentrate price of RMB 17,000/mt), which is lower than the domestic zinc concentrate price.
CBI believes abundant zinc concentrate supplies caused prices to fall, and this might also pull down domestic zinc prices. In the meanwhile, lead smelters should increase operating rates due to increasing lead concentrate supplies at reasonable price levels.