China Zinc Concentrate TCs Drop in April, SMM Says

SHANGHAI, Mar. 25 (SMM) – TCs of domestic zinc concentrate (50%) fall 50 yuan to 5,150-5,350 yuan per tonne (zinc content) in April, and those for imported zinc concentrate (50%) are $130-14 per dry metric tonne (DMT), down $ 5, according to SMM quotes on March 25.

SMM understands TCs of domestic zinc concentrate were lowered for some zinc smelters in Henan, Shaanxi and Guangxi. More smelters are expected to lower TCs of domestic zinc concentrate in the near term.

“An increasing number of mines in North China restart production as the weather gets warmer. But with severe losses from imported ore, zinc smelters prefer domestic ore.” an SMM zinc analyst explained.

Losses from imported ore expanded 410 yuan to 1,150 yuan per tonne (zinc content) compared with domestic ore, SMM calculates. Domestic zinc smelters are unwilling to buy imported ore due to low TCs and poor SMM/LME zinc price ratio, with no trading reported.

TCs of domestic zinc concentrate (50%) fell to 5,200-5,400 yuan per tonne (zinc content) this past week, and those for imported zinc concentrate (50%) slid to $110-120 per dry metric tonne (DMT), with trading mainly between $ 110-130, according to SMM data.

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