SHANGHAI, Jun. 12 (SMM) – Supply of zinc concentrate at major Chinese zinc smelters was sufficient in May despite recent strict inspections at mines, Shanghai Metals Market survey found.
Domestic zinc concentrate output in the first four months this year was 1.87 million tonnes, and refined zinc output totaled 1.71 million tonnes, leaving a supply glut of 82,000 tonnes in concentrate based on the 95.6% recycling rate.
TC for zinc concentrate is expected to rise in June, SMM foresees. Growing supply from mines, resulting from tight liquidity and unit maintenance at zinc smelters will leave zinc smelters in a more favorable position over pricing in June.
In May, prices of domestic zinc concentrate (50%) were 5,000-5,300 yuan ($811-860) per tonne (zinc content, price to factory), and $135-150 per dmt for imported zinc ore, according to SMM pricing data.