SHANGHAI, Sept. 25 (SMM) -TCs of imported zinc concentrate fell $5 to $190-205 per dry metric tonne (DMT) in October, SMM data show, which has dropped $12.5 from 2015’s peak. Will this affect China’s zinc concentrate imports?
“Lower TCs of imported zinc concentrate are not expected to hurt China’s zinc concentrate imports,” said an SMM zinc analyst. “Import window has opened. Besides, demand for imported ore is still strong due to stockpiling in preparation for winter production and ore shortages in some regions,” China’s zinc concentrate imports in Q4 should stay high, SMM foresees.
The drop in TCs of imported zinc concentrate is because overseas suppliers hold back goods and cargo holders lower their quotes against falling LME zinc prices. Meanwhile, the drop is acceptable by domestic buyers now that high SMM/LME zinc price ratio allows for high profit. Profit from imported zinc concentrate was 870 yuan per tonne (zinc content) higher than domestic zinc concentrate in September.
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