Newssummary: Yunnan Hualian Zinc&Indium 8,000-tonne Daily Ore Dressing Project Passes Environmental Tests

On the one hand, Teck Resources has signed an annual zinc concentrate contract with a 45% increase in TCs to $230/dmt. An escalation clause was included: if the prices of zinc exceed $3,800/mt, TCs will rise by $0.05/mt for every $1/mt increase in the prices of LME zinc, but if the zinc prices fall, TCs will remain unchanged (the same as the 20%/80% price sharing scheme in China).

Total zinc ingots inventories across seven major markets in China stood at 278,000 mt as of April 8, up 5,200 mt from April 1, down 300 mt from March 6. Domestic inventories increased.

The government of Southwest China’s Yunnan province has rolled out plans to promote major companies’ commercial stockpiling of key non-ferrous metals, including copper, aluminium, lead, zinc, tin, germanium and indium, as part of the effort to support the metals market impacted by the coronavirus pandemic and to boost the development of the real economy. 

Trading in the indium spot market in China was lacklustre during the week ended Friday June 7 as a declining market kept buyers and sellers on the sidelines

Traders continued to lower offers in China’s spot zinc market on Thursday May 10 as supply of imported zinc increased, SMM learned.

In China's spot zinc market on Wednesday May 9, smelters continued to lower offers after thinner transactions from the previous day

Trading in the indium spot market in China was lacklustre during the week ended Friday April 27 as both buyers and sellers were keen to delay deals until the VAT cut takes effect on May 1

As the China-US trade war worsened, stock prices of Chinese minor metal producers dropped for the most part on Wednesday April 18 at Shanghai and Shenzhen Stock Exchanges, SMM learned.

SHFE zinc tumbled during the day and touched a low at 23,605 yuan/mt on Thursday April 12 despite better fundamentals since the start of this month.

SMM Evening Comments