Tight supplies, cooler demand to keep domestic lead concentrate TCs flat in Dec

SHANGHAI, Nov 28 (SMM) – Treatment charges (TCs) of domestic lead concentrate in December are expected to change little from November on lingered tight supplies and cooler demand, SMM assessed. 

While supplies of domestic lead concentrate will remain tight next month, lower profits at smelters deterred their purchases, and this is expected to keep the TCs flat on month. Bad weather in high altitude regions of Inner Mongolia and Qinghai accounted for domestic tight supplies, SMM learned. 

However, in the first quarter of next year, domestic TCs are likely to fall when supply is unexpected to meet demand, SMM expects. 

In November, supply tightness of domestic lead concentrate pushed smelters to purchase imported materials, amid opened imports arbitrage window from the start of Q4. 

Domestic TCs are expected to trade at 1,700-1,900 yuan/mt in metal content in December, with imported TCs at $20-30/dmt, both limitedly changed from November, according to SMM assessment.