SHANGHAI, Jul. 12 (SMM) - TC/RCs for domestic zinc concentrate was stable between RMB 4,800-5,000/mt in the week ending July 7, with TC for imported zinc concentrate also steady between USD 125-140/mt. Imported zinc concentrate is typically signed on a long-term basis, leaving TC moving in narrower ranges compared with domestic zinc concentrate.
Operating rates at mining companies are higher this year due to bigger profits. When combined with commissioning of new capacity, zinc ore supply is ample. As such, TC is under no downward pressure. Zinc smelters say they are still losing money given the current TC. Despite this, their production is little affected since prices of zinc concentrate are relatively low. TC will rise once zinc prices rally. (Edited by SMM)