Home

Metal News

Zinc

China 2Q Spot Zinc Treatment Charges Down 47% -Standard Bank

UPDATE 1-Rio Tinto to Expand Yarwun Alumina Plant H2 2012

BEIJING, June 23 -- Spot Chinese zinc treatment charges have dropped by nearly half over the past couple of months to around $90 a metric ton from $160-$180/ton at the start of the second quarter, Standard Bank said late Tuesday.
The 47% decline in charges reflects much tighter concentrate supplies, Standard's metals analyst Leon Westgate said in a note.
Treatment charges are fees paid to smelters to process the concentrate into refined product. Lower TCs mean lower margins for refined zinc producers.
&quot;The main reason for the decline in TCs appears to be a combination of miners paring back production, or reducing sales in the face of weaker prices, and smelters upping capacity utilization rates in expectation of increased demand,&quot; he wrote.
Chinese zinc concentrate imports in May fell 5.6% on month and 25% on year to 223,985 tons. Concentrate imports have fallen 3.6% on year in the first five months.
&quot;Whether the concentrate tightness results in significant smelting capacity closures remains to be seen,&quot; Westgate said.
&quot;However, some smelters have already brought forward scheduled maintenance closures, with that trend likely to spread unless outright prices or TCs start to recover.&quot;
&nbsp;
&nbsp; 
&nbsp;

Rio Tinto Says Aluminum Markets To Recover But Still Cautious On Short Term

China 2Q Spot Zinc Treatment Charges Down 47% -Standard Bank_SMM | Shanghai Nonferrous Metals

SMM Morning Comments (Sep 22): Shanghai base metals were mostly lower following overnight dollar bounce-back 

SMM Morning Comments (Sep 25): Shanghai base metals were mostly lower on COVID-19 concerns and disappointing US jobless data 

SMM Morning Comments (Sep 23): Shanghai base metals fell broadly on coronavirus concerns

SMM Evening Comments (Sep 21): Shanghai nonferrous metals closed mostly higher, nickel fell 1.99%

SMM Morning Comments (Sep 24): Nonferrous metals fell across the board as the dollar extended gains 