SHANGHAI, Dec 2 (SMM) – According to the customs data, zinc concentrate imports totalled 303,400 mt in October, up 39,000 mt from September and 53,000 mt from October 2019.
Top three importers in October:
- Peru- 90,700 mt, accounting for 29.9% of total imports
- Australia- 69,200 mt, accounting for 22.8% of total zinc concentrate imports in October.
- Spain- 28,500 mt, accounting for 9.4% of total imports.
Zinc concentrate rose month-on-month in October as shipment from Peru remained normal and exports to China increased in September; demand for zinc ore rose sharply at smelters amid high output and winter stockpiling; domestic zinc ore output declined sharply in 2020 and mines in high-altitude areas will suspend operation.
In November, imported TCs declined to $80-90/dmt due to the suspension of production at Gamsberg mine. Domestic smelters were reluctant to accept this price, and some smelters have cut their output. SMM predicts that imported zinc concentrate is expected to remain around 300,000 mt in November.
As of January-October this year, the output of SMM zinc concentrate sample enterprises decreased 86,100 mt year-on-year. The reasons are as follows:
Source: SMM
Note: Imported concentrate (Zn 50%,$/dmt); domestic concentrate (Zn 50%,yuan/mt, Zn content)
Discussions on zinc concentrate TCs (treatment charges) between domestic mines and smelters in December approached to an end last week. According to SMM survey, zinc concentrate TCs across regions declined from November while imported zinc concentrate TCs quotes decreased amid accident at Gamsberg. The bidding prices at some overseas mines stood at $75/dmt in Q1. Based on the current domestic comprehensive TCs of zinc concentrate compared to the standard imported zinc concentrate TCs, domestic zinc ore has greater price advantage and smelters will restock domestic zinc ore aggressively. Domestic zinc concentrate TCs are expected to trend lower further and near to imported TCs. Inventories at Lianyungang stood at 106,800 mt last week.
