TCs for zinc concentrate to extend gains in Sept

SHANGHAI, Aug 27 (SMM) – Treatment charges (TCs) for domestic and imported zinc concentrate are likely to extend their gains in September with sufficient supplies, SMM expects. TCs are likely to  increase by 100-300 yuan/mt in zinc content in September.

Supplies were adequate as domestic miners operated at normal levels and imported materials entered in an open import arbitrage window.

However, operating rates across Chinese smelters stayed at lows as falling zinc prices lowered their production enthusiasm. Many smelters chose to undertake maintenance. SMM research found that the operating rate across Chinese smelters fell to a 14-year low of 66.33% in July. Whilethe rate picked up in August, it remained some three percentage points below the same period last year.

TCs for domestic resources mostly traded at 3,600-4,100 yuan/mt in zinc concentrate over the week ended August 24. Meanwhile, Trades for TCs for imported resources were thin and were mostly offered above $60/dmt with few above $70/dmt.