China Zinc Concentrate TCs Hold Stable, with TCs of Imported Ore down Further

SHANGHAI, Jan. 21 (SMM) - 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 further to $140-150 per dry metric tonne (DMT), with few deals made at $160, and $120-130/dmt for some goods for future delivery, according to SMM data.

Profit from imported ore remained 30 yuan per tonne (zinc content) above domestic ore, SMM calculates. A source reports Teck Resources signed term TCs of zinc concentrate in 2016 with European zinc smelters at $175 per dry metric tonne (DMT), basing on benchmark LME zinc price of $1,500 per tonne.

SMM understands some cash-strapped mines maintained stable supplies. Trading and prices slacken as the Chinese New Year holiday nears. Some mines plan to delay reopening following the holiday.

China zinc concentrate TCs should stabilize in the near term with market muted, SMM predicts.

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