SHANGHAI, May 10 (SMM) - TCs of domestic zinc concentrate will fall further on decreasing supplies, SMM says.
China’s zinc concentrate imports and output decreased, while inventories at zinc smelters also declined.
Zinc concentrate imports were 649,000 tonnes in Q1 2016, down 10.16% year-on-year. Imports in May are expected to post sharp drop. Domestic zinc concentrate output was also low due to low zinc prices and environmental protection factor, SMM explains. SMM expects zinc concentrate output to fall further in Q2.
Moreover, zinc concentrate inventories at domestic zinc smelters were only sufficient to 40 days of production as of late April, or less than 30 days at some smelters, SMM adds.
TCs of domestic zinc concentrate (50%) are 5,100-5,300 yuan per tonne (zinc content) for now, down 150 yuan from level before the 2016 Chinese New Year holiday, according to SMM data.
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