SHANGHAI, Dec. 31 (SMM) - Operating rates at some small and medium mines fell further due to languishing market and nearing of China’s New Year holiday, so some zinc smelters in South China will be vulnerable to ore tightness in January, SMM says.
“Zinc prices are still low despite recent gains. So some zinc mines producing low grade ore intend to suspend operation soon as China’s New Year holiday in 2016 nears,”said an SMM zinc analyst.
TCs of domestic zinc concentrate (50%) were stable at 5,300-5,500 yuan per tonne (zinc content) this past week, and those for imported zinc concentrate (50%) were $150-170 per dry metric tonne (DMT), with the low-end of $140, according to SMM data.
Profit from imported ore inverted from 80 yuan to 170 yuan per tonne losses compared with domestic ore, SMM calculates.
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