China Zinc Concentrate TCs Edge Lower, with more Declines Expected

SHANGHAI, Mar. 4 (SMM) - TCs of domestic zinc concentrate (50%) dropped slightly to 5,200-5,500 yuan per tonne (zinc content) this past week, and those for imported zinc concentrate (50%) were $120-130 per dry metric tonne (DMT), according to SMM data.

SMM understands TCs of domestic zinc concentrate were lowered for some Chinese zinc smelters. Some small and medium mines in Guangxi have yet to restart production due to explosive restrictions during the NPC & CPPCC held on March 3-4.

Losses from imported ore expanded 240 yuan to 1,200 yuan per tonne (zinc content) compared with domestic ore, SMM calculates. Some zinc smelters prefer to buy domestic ore and require higher TCs of imported zinc concentrate. When combined with sufficient inventories on hand, trading for imported ore was sluggish.

TCs of domestic zinc concentrate should inch lower on stronger demand, SMM says. 

“Domestic zinc smelters are mostly inclined to buy domestic ore because of low TCs of imported ore and the unfavorable SMM/LME zinc price ratio.” explained an SMM zinc analyst.

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