SHANGHAI, Dec. 18 (SMM) - A growing number of small and medium zinc mines in South China slashed or suspended production due to falling zinc prices, tightening domestic zinc concentrate supplies in some regions. Some mines also hold back goods, so TCs of domestic zinc concentrate are expected to fall in some regions, SMM says.
Guosen Mining Co.’s 23,000-tpy (zinc content) zinc concentrate processing project will end trial production December 21, and come online in January 2016, SMM understands.
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%) fell to $160-180 per dry metric tonne (DMT), with the low-end of $140-150.
Profit from imported ore fell 150 yuan to 360 yuan per tonne above domestic ore, SMM calculates. “North China-based zinc smelters required higher TCs of imported ore. Smelters in South China, however, have weak negotiation power over pricing due to local ore tightness and strong demand for imported ore.”said an SMM zinc analyst.
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