SHANGHAI, Mar 25 (SMM) – Canadian miner Teck Resources and smelter Korea Zinc have reportedly agreed zinc concentrate treatment charges (TCs) for 2020 supply at $299.75/dmt, the highest since 2008.
The deal, which has zero price participation, marks a substantial increase from $245/dmt for 2019. The two major players in the metals sector had been widely expected to set annual zinc concentrate TC for 2020 at $300/dmt.
As of March 20, SMM assessed spot TCs in China at around 6,100 yuan/mt of Zn content for domestic zinc concentrate and $250-260/dmt for imported materials.
Spot TCs in China have declined as imports dwindled amid the coronavirus outbreak outside China and as Chinese mines trimmed production due to squeezed profits.