In undersupplied market, US-China lead trade continues amid tariff negotiations

Chinese lead smelters are continuing to purchase and import US-origin lead concentrates amidst ongoing negotiations on 2019 tariffs and a tense relation between the two countries over trade.

Sources with direct knowledge of the deals detailed how cargoes of lead concentrates mined in the United States by Teck Resources and Doe Run were still being imported Chinese buyers, with the roughly $100-per-tonne value of the 5% tariff split between the two parties.
If Chinese buyers take the cost of the import tariff, they receive concentrates with a $50 inflation at current lead prices to spot Treatment Charges paid to them, said sources who declined to be named because the dealings are private.
Doe Run declined to comment, while Teck Resources did not respond to requests to comment by the time of publication.
A fallout between China and the US over trade has seen both countries imposing tit for tat import tariffs on thousands of goods and products, including metals.

The tension has seemingly eased as White House said it will leave the 2019 January...


Archie Hunter

December 03, 2018

09:00 GMT