[Zn TCs] Supply Shortage Weighed Down Zinc Concentrate TCs in South China in June

SHANGHAI, Jul. 3 (SMM) - Zinc concentrate shortages in South China allowed smelters there to lower TCs slightly for both domestic and imported zinc concentrate in June, SMM finds in its survey.

Domestic zinc concentrate TCs in South China dropped to as low as 5,200 yuan per tonne (Zn 50%, price to factory, zinc content) due to low goods availability for some smelters, compared with 5,300-5,500 yuan in China. TCs for imported zinc concentrate (50%) were $ 210-220 per dry metric tonne (DMT), but quotes at the high-end of the price range in South China were fewer.

Higher profit from imported zinc concentrate grew demand for imported ore, also weighing on TCs for imported zinc concentrate.

The SMM/LME zinc price ratio remained above 7.6 most of June, leaving profit from imported zinc concentrate 400 yuan per tonne (zinc content) above domestic zinc concentrate, SMM data show.

Zinc concentrate supply in North China remained healthy, though, and nearly 80% of Chinese zinc smelters reported sufficient raw material.

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