Lead concentrate TC/RCs continue to rise in October, with a heavily negative arbitrage between the London Metal Exchange and Shanghai Futures Exchange cash prices combining with a short-term excess of units leaving market participants little choice but to raise terms for imports into China.
Fastmarkets' lead spot concentrate TC, low silver, cif China was assessed at $125-145 per tonne on October 25, a sharp increase from September's $80-100 per tonne.
The Fastmarkets lead spot concentrate TC, high silver, cif China was assessed at $135-160 per tonne, up from $100-120 per tonne the previous month.
Higher TCs come as the LME cash lead price has steadily firmed, trading at a 16-month high of $2,247 per tonne on October 25, with futures spreads in backwardation and warrants tightly held. This is in contrast with the SHFE active lead contract, which was last at a three-month low of 16,745 yuan ($2,370) per tonne.
A positive price...