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REMINDER
These values are FastMarkets copyright
They may not be used or re-distributed without permission
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DESCRIPTION
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CURRENT RATES
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PREVIOUS RATES
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NOTES
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SPOT ZINC CONCENTRATE TCs
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CIF China
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110-120
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125-135
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TCs drop as supply side continues to tighten in May/June, more low offers heard than actual deals, trading volume thin
Trader on trader buying seen as market struggles to replace Australian concs
Chinese smelters tend to buy domestic concs with more attractive TCs; little interest in overseas spot tonnages, although buying is taking place
Chinese smelters operating at close to full capacity - 500kt of announced production cuts yet to materialise
Average inventories for most smelters in China is around one month; Stocks at major Chinese ports Lianyungang and Fangchenggang total around 200,000t
Average Chinese domestic TCs fall at lower end of range to 5,000-5,200 yuan ($759-789) dlvd incl. VAT; disparity between smelters in northern and southern China around 300 yuan per tonne
Zinc ore imports to China at 147,138t in Apr, down 36.82% YoY, Jan-Apr at 796,400t, down 16.65% YoY
Zinc price breaks through $2,000 level in June, hits one-year high on June 13
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ANNUAL ZINC CONCENTRATE TC
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Annual benchmark
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203 in 2016
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245 in 2015
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Teck-Korea Zinc agreement based on $2,000/t zinc, 17-pct drop from 2015's TC at same base price. Bulk of the market follows
Deal includes 9-pct escalator on a zinc price of over $2,000 to $2,500, with 8-pct escalator above $2,500 to $3,000 and 5-pct escalator above $3,000 to $3,750. Ity also includes de-escalator of 3 pct below $2,000 to $1,500
Teck-Glencore also reach agreement at TC of $188 in 2016, based on $1,500/t zinc. Escalators make numbers effectively the same as Korea Zinc
Deal includes 3-pct escalator on a zinc price up to $2,000, with 9-pct escalator up to $2,500, 8-pct escalator up to $3,000 and 5-pct escalator up to $3,750
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SPOT LEAD CONCENTRATE TCs
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CIF China
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145-155 high silver
150-160 low silver
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150-165 high silver
150-165 low silver
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TCs down on supply tightness, Chinese buyers prepared to accept lower numbers.
Some Chinese mines start to resume production, but the process is slower than expected in part due to dire SHFE lead prices.
Chinese domestic TCs drop to 2,200-2,400 yuan ($334-364) dlvd incl. VAT
Lead concentrate imports to China at 93,126t in April, down 25.99% yoy; Jan-Apr imports at 428,866t, down 18.73% yoy
LME lead price remains low around $1,700/t
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ANNUAL LEAD CONCENTRATE TCs
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Annual benchmark high silver
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170 in 2016, silver RC at $1.50/oz
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192.5 in 2015, silver RC at $1.50/oz
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South32 and Korea Zinc agree 2016 deal for Cannington concentrate (Australia). Sumitomo's San Cristobal (Bolivia) follows
Annual TCs down due to tighter supply and increased demand from smelters especially in South Korea and Germany
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Annual benchmark low silver
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210 with Japanese; 193 with Korean;
130-140 with Chinese in 2016
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222 in 2015
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Teck's Red Dog conc with Korean smelter for TCs at $193/t; with Japanese at $210/t, both based on $2,000/t lead; includes 6-pct escalator on a lead price above $2,000/t, 4-pct de-escalator on price below $2,000/t. Zinc payment terms included.
Teck with Chinese smelters at $130-140/t; no base prices for lead, silver RCs at $1.2-1.5/oz
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These treatment charge (TC) assessments are for concentrates in line with below grades and specifications. TCs are priced in US dollars per tonne. For lead, Refining Charges (RCs) on silver are in dollars per ounce.
Zinc: 45-55 percent zinc content, low silver (0-170 grams/t), silica 3.5-4.5%, copper below 3% (high copper 4-5%), lead below 3.5% (total copper, lead, silica at max 6-7%), arsenic below 0.6%, cadmium below 0.33% and mercury below 0.06%
Lead: 55-65 percent lead content, high silver 2-4kg/low silver below 1kg, arsenic below 0.7%, mercury below 0.05%
These rates are nominal indications only, based on contributions from market sources, and should not be construed as actual bids and offers.
(Table compiled by FastMarkets’ Physical reporting team, physicals@fastmarkets.com)
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