SHANGHAI, Jun. 5 (SMM) – SMM expects TCs for Chinese lead concentrate (Pb 50%) to hold steady at 1,800-2,000 yuan per tonne (Pb content) next week despite tight supply for the domestic material.
Mines in Jianshui County, Yunnan province, remained closed last week, SMM learned. Smelters in Hunan, Yunnan and Guangxi complained about difficulty in sourcing domestic concentrate due to low operating rates at south China mines. In north China, most large mines managed to maintain stable production. SMM thus sees Chinese concentrate supply to remain tight next week.
That being said, TCs for domestic concentrate will be little affected by this limited supply, as imported concentrate will remain sufficient. China’s lead concentrate imports increased last week as profits widened to 580 yuan per tonne (Pb content).
TCs for the imported concentrate (Pb 60%, Ag < 1,000 g) were $170-180 per dry metric tonne, with a few transactions made at higher TC of $180 per dry metric tonne.
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