SHANGHAI, Jul 25 (SMM) – Treatment charges (TCs) for domestic lead concentrate are likely to extend July’s gains in August as ore output grows, SMM believes.
We expect TCs for domestic materials to trade at 1,650-1,850 yuan/mt in lead content in August, up 100 yuan/mt from July. TCs for imported materials are likely to remain at $15-25/dmt.
Miners in Qinghai, Xinjiang and Inner Mongolia provinces would gradually resume production in August, as temperatures climb. This is expected to boost already-adequate supplies. Meanwhile, smelters are likely to raise TCs in August to recover some losses as the market declines.