Domestic zinc concentrate TCs finalised in August, continuing to rise MoM [SMM Weekly Zinc Concentrates Review]

SMM reported on August 1:

This week, both domestic zinc concentrate TCs and imported zinc ore TCs increased MoM. Specifically, the average weekly domestic zinc concentrate TC (Zn50) rose by 100 yuan/mt (metal content) to 3,900 yuan/mt (metal content), and the SMM Imported Zinc Concentrate Index increased by $2.5/dmt to $78.75/dmt MoM.

In the spot market, as the month began, zinc concentrate TCs in multiple domestic regions were finalised this week, with varying degrees of adjustment. Smelters maintained high levels of raw material inventory, and TCs continued to rise. Regarding imported zinc ore, the SHFE/LME price ratio remained low recently, resulting in significant losses from zinc ore imports. Given the price advantage, smelters primarily purchased domestic zinc ore, with few transactions of imported ore recently. According to SMM, the offer levels for ordinary imported zinc ore continued to rise recently, with some brands' offers exceeding $100/dmt, and the upward trend in imported zinc ore TCs persisted. Additionally, the tender price for zinc ore from a certain mine in southwestern China in August was around 4,000 yuan/mt (metal content), an increase of approximately 200 yuan/mt (metal content) MoM. SMM will continue to monitor subsequent changes in TCs.

This week, the total inventory of zinc concentrates at China's main ports, as tracked by SMM, was 333,500 mt, a decrease of 20,500 mt WoW, indicating a decline in zinc ore inventory at ports.