Tight supplies, winter purchases to lower domestic lead concentrate TCs in Q4

Publicado: Nov 21, 2018 14:17
Winter stockpiling across lead smelters is likely to lower treatment charges of domestic lead concentrate in the fourth quarter

SHANGHAI, Nov 21 (SMM) – Winter stockpiling across lead smelters is likely to lower treatment charges (TCs) of domestic lead concentrate in the fourth quarter. Bad weather deterred supplies at lead mines in high altitude regions of Inner Mongolia and Qinghai, and this will also weigh on the TCs to the year end, SMM believes. 

As of November 21, import window for lead concentrate has remained open since the start of Q4. Supply tightness of domestic lead concentrate will push smelters to purchase imported materials. 

Current high TCs supported smelters' producing enthusiasm, who will also step up production to meet annual targets. In October, raw materials stocks at those smelters jumped 5.68% from September, reflecting robust demand.

Domestic TCs rallied all the way up from Q1 to Q3 this year, to a high around 1,800 yuan/mt in metal content as of November 1, SMM monthly TC data showed.  

Declaração sobre a Fonte de Dados: Com exceção das informações publicamente disponíveis, todos os demais dados são processados pela SMM com base em informações publicamente disponíveis, comunicação de mercado e com base no modelo de base de dados interna da SMM. São apenas para referência e não constituem recomendações para a tomada de decisão.

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Tight supplies, winter purchases to lower domestic lead concentrate TCs in Q4 - Shanghai Metals Market (SMM)