Lead concentrate TCs fell amid tight supply

According to shipping data, there were no lead concentrate imports in the first week of July. The import window has now opened, and the SHFE/LME price ratio has expanded. However, due to lower-than-expected production recovery at overseas lead-zinc mines, imported lead concentrate TC quotations have declined, and actual market transactions are sluggish. A trader mentioned that due to restrictions on some payment channels, the number of quotations for imported ore from Russia have decreased, but lead concentrate TCs have not fluctuated as a result. According to an SMM survey, lead concentrate TC offered by mines has not changed significantly, but due to long-distance transportation and the scarcity of lead concentrates rich in copper, zinc, and silver, the price (delivery to factory) varies greatly among smelters. The actually traded TC for domestic lead concentrate (Pb50%) with high silver content remains at 200-300 yuan/mt. Meanwhile, smelters in Hunan and Inner Mongolia have suspended domestic lead concentrate purchase after receiving long-term import orders, and market sentiment is cautious. The changing metal-rich pricing method has led to negative TC for some lead concentrates, and the lead concentrate market remains tight, maintaining a tight balance between supply and demand.