Only 40% Lead-Zinc Mines in Fujian in Production as Environmental Protection Overshadows, SMM Reports

On the one hand, Teck Resources has signed an annual zinc concentrate contract with a 45% increase in TCs to $230/dmt. An escalation clause was included: if the prices of zinc exceed $3,800/mt, TCs will rise by $0.05/mt for every $1/mt increase in the prices of LME zinc, but if the zinc prices fall, TCs will remain unchanged (the same as the 20%/80% price sharing scheme in China).

Total zinc ingots inventories across seven major markets in China stood at 278,000 mt as of April 8, up 5,200 mt from April 1, down 300 mt from March 6. Domestic inventories increased.

Traders continued to lower offers in China’s spot zinc market on Thursday May 10 as supply of imported zinc increased, SMM learned.

In China's spot zinc market on Wednesday May 9, smelters continued to lower offers after thinner transactions from the previous day

SHFE zinc tumbled during the day and touched a low at 23,605 yuan/mt on Thursday April 12 despite better fundamentals since the start of this month.

SMM Evening Comments

SMM Evening Comments

Trading remained flat in the Shanghai zinc spot market today as sellers were unwilling to releases cargoes after zinc prices fell.

Losses on zinc imports narrowed to 150-250 yuan/mt recently as LME zinc faced resistance and edged down.

SMM Morning Comments