SHANGHAI, May 28 (SMM) – Growing supply will push up TCs for domestic zinc concentrate in China in July, Shanghai Metals Market foresees.
Imported concentrate will flood into Chinese market now that the SMM/LME zinc price ratio has climbed above 7.5. Currently, imported zinc concentrate is 200-300 yuan per tonne (zinc content) more profitable than domestic concentrate, up from an average 180 yuan per tonne a week ago, SMM data showed. This will offer incentive for imports.
Besides, supply of domestic concentrate is also plentiful. Domestic smelters will enter maintenance cycles in June and July when the traditional off-season sets in, which will bite into concentrate demand and push up domestic supply.
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