China's Lead TCs Rise as Concentrate Supply Eases

SHANGHAI, Sept. 18 -- China's lead treatment charges (TCs) gained this week as concentrate supply eased up, sources report.

    Spot TCs for imported lead concentrates are quoted at USD 85-90/mt, from USD 75/mt a week ago, while TCs for local lead concentrate are at RMB 3,000/mt (USD 440/mt), from RMB 2,500-2,800/mt about two weeks ago.

    "With rising lead prices, especially after [spot] Shanghai lead broke through RMB 16,000/mt, more and more miners are willing to sell their concentrates," said an official at a lead smelter in Henan.

    "Meanwhile, mining output in northern China traditionally rises in July-September as it is the best season for mining activities, said an analyst in Beijing.

    However, rising TCs, alongside rising prices of silver, a by-product, may undermine refined lead prices, said market participants.

    "It is by no means good news for refined lead prices," said the first official. "Although LME lead has reached new highs, the market is far from stable and prices are volatile."

    "More lead smelters may pick up production, maybe secretly, driven by rising TCs," he said. "With increasing silver prices, the by-product may add profits to lead smelters of about RMB 1,000/mt."

    (Source: Metal Bulletin)