Fastmarkets’ assessment of zinc spot concentrate TC, cif China was $78-90 per tonne on Friday July 30, up from $75-88 per tonne three weeks earlier, and its highest level since last October.
Terms have gradually increased since Chinese smelters took extended summer maintenance breaks from purchasing, but market participants were confident an equilibrium of high metal prices, high premiums and low TCs can hold out a little longer.
“They will keep stable in the short-to-medium term, primarily because, overall, prices are quite high and smelters are doing pretty well in terms of bonuses. Acid prices are also pretty high, so the low TCs are being compensated by the other value-added levers,” a producer source said.
The three-month zinc price on the London Metal Exchange closed at $3,031 per tonne on July 30, above...