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Home / Metal News / Tight Supply in South China to Weigh down TCs for Zinc Concentrate in June

Tight Supply in South China to Weigh down TCs for Zinc Concentrate in June

May 29, 2015 16:42

Source:SMM

TCs for domestic zinc concentrate are expected to drop slightly in June, Shanghai Metals Market foresees.

SHANGHAI, May 29 (SMM) – TCs for domestic zinc concentrate are expected to drop slightly in June, Shanghai Metals Market foresees.

Supply tightness in south China, resulting from stringent environment protection inspections, growing demand and the decline in ore imports, is the major reason behind SMM’s estimation.

“Utilization rate at zinc smelters in south China is on the rise in May after unit maintenance. and compared with 1H 2015, ore demand at local zinc smelters is expected to grow by 12% during the second half of 2015,” SMM’s zinc group estimates.

The shortfall of ore, however, is not expected to last for a long time, says SMM, believing the growth of ore supply will be higher than that of ore demand during the rest of the year.

“Output growth at local mines and higher imports will grow ore supply by 20% in south China in 2H 2015,” SMM expects.

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