Stockpiling for the Chinese New Year is largely completed, and domestic TCs remain stable. [SMM Zinc Concentrate Weekly Review]

SMM Jan 30:

On a weekly basis, the SMM Zn50 domestic weekly TCs average was flat WoW at 1,500 yuan/mt in metal content, while the SMM imported zinc concentrate index fell $4.25/dmt WoW to $25.5/dmt.

Domestic ore market. As the Chinese New Year holiday approached, some mines planned to suspend production in February, weakening domestic zinc concentrate supply. However, with previously purchased zinc concentrates arriving at domestic smelters, stockpiling for February was largely completed. Few domestic zinc concentrate deals were concluded this week, and TCs in many regions remained stable. Additionally, SMM learned that a zinc mine in North China awarded a tender this week, with the winning bid result at 2,600 yuan/mt in metal content (including a 20/80 sharing).

Imported ore market. Traders were less willing to sell this week, and smelters had largely completed stockpiling for the Chinese New Year, showing low purchasing enthusiasm for imported zinc concentrates. Few imported zinc concentrate deals were concluded during the week. It was reported that the Antamina zinc mine tender result was around -$20/dmt this week, for a volume of 10,000 mt with shipment in March.

SMM zinc concentrate inventories at China's main ports totaled 377,500 mt in physical content this week, up 81,000 mt WoW, with Lianyungang and Fangchenggang contributing the main increases.