China Zinc Concentrate TCs to Stabilize despite Halts at Mines

SHANGHAI, Dec. 4 (SMM) - TCs of domestic zinc concentrate are expected to remain steady in the near term due to sufficient inventories at zinc smelters, despite halts at many mines in Northeast and Northwest China, SMM says.

SMM also understands Gansu’s Guojiagou mine put off commissioning to mid-2016. Some zinc mines in Yunnan intend to suspend production against low zinc prices, with TCs of domestic zinc concentrate lowered slightly at a few local smelters. Operating rates at mines in Sichuan’s Liangshan were very low.

TCs of domestic zinc concentrate (50%) were stable at 5,300-5,500 yuan per tonne (zinc content) this past week, and those for imported zinc concentrate (50%) were also steady at $170-190 per dry metric tonne (DMT), with the low-end of $165.

Profit from imported ore expanded 100 yuan to 500 yuan per tonne above domestic ore, SMM says. 

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