China Zinc Concentrate TCs to Stabilize in Near Term but Fall in the Future

SHANGHAI, Jun. 16 (SMM) – Domestic zinc concentrate TCs are expected to hold stable in the near term but will fall in the foreseeable future, SMM says.

“Tight supplies of ore will leave TCs stable in the near term,” one SMM zinc analyst said.

 SMM understands TCs of domestic zinc concentrate were lowered further this past week, with quotes as low as 4700 yuan per tonne (zinc content). TCs in some regions were high due to short-distance delivery. Mines and traders sold proactively with high zinc prices.

All mines in Hunan’s Huayuan County remained closed but are expected to restart in late June.

Losses from imported ore expanded 200 yuan to 1,500 yuan per tonne (zinc content) compared with domestic ore this past week, SMM calculates. Trading was rarely made against limited supply and zinc smelter unwillingness to purchase.

TCs of domestic zinc concentrate (50%) were 4,900-5,100 yuan per tonne (zinc content) this past week, and those for imported zinc concentrate (50%) were $100-120 per dry metric tonne (DMT), with some quotes as low as $90, according to SMM data.

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