News of the Week for Zinc Market (Mar. 25-29)

SHANGHAI, Apr. 2 (SMM) – Here are major reports for China’s zinc market in the past week.

High Inventories and Soft Consumption Limit Increase in Lead and Zinc Prices
Li Xiongzi, General Manager to Zhuzhou Smelt, stated at the 8th Shanghai Lead & Zinc Summit held on March 22 that overcapacity, weak consumption, and high inventories are major factors constraining any increase in lead and zinc prices.

Oversupply of Lead and Zinc Concentrate Drives up TC
Global TC for lead and zinc concentrate has been rising during the past half year, with profit sources for lead and zinc industries tending to shift to smelting operations.

Data show that TC for lead concentrate in global market increased to USD 107/mt this year from 2012’s USD 88.3/mt, up as much as 21%, while that in China’s domestic market was up 2.4% from 2012’s RMB 1,906/mt to RMB 1,952/mt at present.

Profit Margins for Lead & Zinc Industry Down to 0.46%
The growth in cost for lead and zinc industry was significantly higher than that in profits last year, with margin at major lead and zinc enterprises contacted by the China Nonferrous Metals Association falling sharply to a mere 0.46%.

CNIA: Lead & Zinc Enterprises Face Three Major Issues
Peng Tao, secretary to the lead and zinc division of the China Nonferrous Metals Industry Association, gave a summary to three major issues facing China’s lead and zinc industries at the Shanghai Lead & Zinc Summit 2013 last Friday.

Chihong Zn & Ge Entered into Acquisition Agreement with Selwyn Resources
Selwyn Resources entered into an agreement with Selwyn Chihong Mining and Chihong Canada Mining for selling the remaining 50% shares for Yukon Territory and Howard’s Pass projects at EUR 50 million.