SHANGHAI, Jan 26 (SMM)－Treatment charges (TC) of zinc concentrate were low in January and is expected to remain low in February due to a shorter supply of zinc ores, according to SMM research.
In Inner Mongolia and Shaanxi provinces, TC stood at 3,500 yuan/mt of metal content while it was below 3,500 yuan/mt of metal content in Guangxi and Yunnan.
SMM predicts TC will remain low before the Chinese New Year holiday given unchanged supply. Zinc prices are expected to be stable despite weak domestic consumption.
Zinc prices have seen recent highs, including a new, 10-year high at $3,481.50/mt on the LME, on positive fundamentals and bullish expectations. But LME inventory has dropped to an eight-year new low, with cancelled warrants risen to 80,000 mt. Spot premiums rose to $20/mt.
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