Zinc, lead conc TCs grind higher while market heads into key annual contract talks

Zinc and lead concentrate treatment charges (TCs) rose in February deals for spot cargoes with liquidity sinking over the Lunar New Year and while market participants became insular ahead of annual contract negotiations.

Fastmarkets assessed zinc concentrate TCs at $215-250 per tonne on February 22 from $210-240 per tonne in January, which reflects the gap between the low volumes of trader and smelter purchasing.
A tender for 18,000 tonnes of Casapalca zinc concentrates was said to be awarded at TCs of $169 per tonne, cif China equivalent, although several market sources noted that the cargo would be delivered by truck to a Peruvian smelter, netting terms back closer to $210 per tonne.
Meanwhile, smelters bought clean concentrates above $240 per tonne in deals reported to Fastmarkets. Many are bidding at TCs above $250 per tonne for clean concentrates, while some deals were reported at around $300 per tonne for complex material.

The market is still waiting for a surge in spot business following the Lunar New Year holidays, but despite attractive spot terms for concentrates, Chinese smelters are yet to return to...


Anna Xu

Archie Hunter

Dalton Barker

Julian Luk

February 22, 2019

17:25 GMT

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