January Zinc Concentrate TC Negotiations Begin; Weekly Zinc Concentrate TCs Rise [SMM Zinc Oxide Weekly Review]

SMM, December 27:

       In January, domestic TCs increased significantly. The monthly average domestic zinc concentrate TC tracked by SMM rose by 300 yuan/mt (metal content) MoM to 1,900 yuan/mt (metal content), while the monthly average SMM Zn50 imported TC increased by $20/dmt MoM to -$20/dmt. On a weekly basis, the weekly average domestic SMM Zn50 TC rose by 200 yuan/mt (metal content) WoW to 1,850 yuan/mt (metal content), and the weekly average SMM Zn50 imported TC increased by $10/dmt WoW to -$20/dmt.

       In the spot market, domestic smelters began negotiating January zinc concentrate TCs this week. The market sentiment for upward adjustments was strong, while the buying sentiment for imported ore remained low. Amid sluggish sales, imported zinc ore prices continued to rise. Although some mines suspended production during the winter at year-end, smelters in north China reported that Chinese New Year stockpiling was largely completed, with days of raw material inventories continuing to increase. Recently, port zinc ore prices also rose to around 2,000 yuan/mt (metal content), and port zinc ore inventories remained ample. Based on this, smelters continued negotiations with domestic mines to further increase domestic zinc concentrate TCs. The actual TC results for next week remain to be seen.

       This week, SMM reported total zinc concentrate inventories at seven ports, including Fangchenggang, Lianyungang, Jinzhou Port, Huangpu Port, Qinzhou Port, Nanjing Port, and Huludao Port, at 300,000 mt, down by 26,500 mt WoW. Lianyungang and Nanjing Port contributed the majority of the decline.

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