Domestic Zinc Concentrate TCs Review

SHANGHAI, Apr 12 (SMM) - Domestic zinc concentrate TCs remained stable last week. The mainstream TCs slumped to nearly 5,000 yuan/mt in metal content following a rapid decline in TCs for one month, and TCs in some regions even plunged to 4,600-4,800 yuan/mt in metal content. The overall domestic zinc concentrate supply was tight. Concentrate inventory at Lianyungang port dropped further to around 145,000 mt WoW last week. In addition, Korea Zinc and Teck Resources set the benchmark TCs under long-term contracts in 2023 at $274/dmt last week, and reached a consensus that if zinc prices are higher than $3,000/mt, 6% of the excess will be offered as dividend SMM believes that the TCs of $274/mt is in line with the previous market expectations, but it is far lower than the CIF prices of imported zinc concentrate. The agreement on dividend also reflects the pessimism on zinc prices in the overseas market.