SHANGHAI, Aug. 27 (SMM) - TCs of imported zinc concentrate are expected to fall further in September due mainly to strong demand in China, SMM zinc analyst predicts.

“Domestic zinc smelters have maintained operating rates high since the start of this year. The average operating rate at zinc smelters has been climbing since March, which reached a high 83.08% in May”, said SMM zinc analyst.

 “Profitable imported zinc concentrate also incentivized purchases by smelters”, SMM adds. Profit from imported zinc concentrate expanded to 1,030 yuan per tonne (zinc content) above domestic zinc concentrate because of the high SMM/LME zinc price ratio.

Meanwhile, some mines overseas were unwilling to sell in the face of continuously falling LME zinc price, tightening supply.

TCs of imported zinc concentrate fell from $200-220 to $200-215 per dry metric tonne (DMT) in July, according to SMM data.

Domestic zinc concentrate TCs will hold stable in September, SMM says.

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