China Zinc Smelters See Tight Ore Supply in South China, SMM Finds

SHANGHAI, Jun. 5 (SMM) – Some Chinese zinc smelters in south China reported tight ore supply, Shanghai Metal Market finds in its latest survey.

Approximately 81% of zinc smelters said supply of ore was sufficient, but 19% of participants, mainly in south China, including Jiangxi, Hunan, Sichuan and Yunnan, reported difficulties in ore purchasing, SMM survey reveals. 

Production disruption at mines in south China, resulting from stringent environmental protection inspections, was blamed for the tightness, SMM observes. The ore tightness in south China slightly sent down TCs for domestic zinc concentrate there in late May. 

North China, however, reported ample supply, with firm charges for ore, leaving mainstream TCs for domestic zinc concentrate mainly between 5,300-5,500 yuan per tonne (zinc content) in May according to SMM data. 

The SMM/LME zinc price ratio became profitable for ore imports in late May, and trading sentiment improved, but only marginally, SMM adds. 

TCs for imported zinc concentrate (50%) were $ 210-220 per dry metric tonne (DMT) in May. 

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