SHANGHAI, Jul. 3 (SMM) - Zinc concentrate supply tightness in South China is expected to alleviate in the latter half of this year, SMM predicts.
"A growing number of mines in Sichuan’s Liangshan restarted production recently as local government allowed these mines to produce whilst undertaking technical upgrading”, SMM zinc analyst says.
A large number of mines in Guangxi closed from environmental protection factors, though. Expiring of mining permits and sluggish lead and zinc prices are also behind their closure.
TCs for domestic zinc concentrate are expected to hold stable next week, SMM foresees.
Domestic zinc concentrate TCs were 5,300-5,500 yuan per tonne (Zn 50%, price to factory, zinc content) or as low as 5,200 yuan this past week. TCs of imported zinc concentrate (50%) were mostly $ 200-215 per dry metric tonne (DMT), with some quotes at $ 220.
SMM calculates profit from imported zinc concentrate narrowed 200 to 350 yuan per tonne (zinc content) above domestic zinc concentrate this past week, SMM data show.
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