REMINDER
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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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125-135
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135-150
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Spot TCs down on tight supply, market players see deficit starting to appear amid rapid drawdown of stocks
Drop in TCs partly attributed to buying against new Trafigura/Nyrstar supply contract, Nyrstar planning maintenance shutdown in first half.
Glencore might consider restarting some idled mine production once LME prices reach $2,000/t
Global mines to produce 12.588mt of concentrate in 2016, down 5.2 pct - Macquarie
Wood Mac forecasts 755kt global concentrate deficit this year
Zinc ore and concentrate imports to China at 231,248t in Dec, Jan-Dec at 3,237,265t, up 47.39% vs 2014
Chinese domestic TCs stable at 5,300-5,400 yuan ($806-821) delivered incl. VAT
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ANNUAL ZINC CONCENTRATE TC
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Annual benchmark
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245 in 2015
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223 in 2014
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Teck/Glencore agreement, based on $2,000/t zinc. Highest level since 2010
Deal includes 9.5-pct escalator on a zinc price of $2,500, with 7.5-pct escalator above $2,500 and de-escalator of 3.5 pct below $2,000
Miners and smelters unable to reach 2016 TC benchmark deal at IZA - base price and escalators are sticking points
Miners want escalators at 3-6 pct; smelters ask for 9 pct
Talk of a "free zone" base price where the TC would be flat and the escalators and de-escalators would only be applicable either side of that range.
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SPOT LEAD CONCENTRATE TCs
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CIF China
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150-165 high silver
150-165 low silver
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160-170 high silver
145-160 low silver
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Lead TCs go down further on increased demand from South Korea and Germany for high silver lead concs
Many Chinese smelters still awaiting import licence for high-silver lead concs, but impact so far is limited
Spot RCs drops to $1.5-1.75/oz while Chinese push for $2/oz
Lead ore and concentrate imports to China at 188,876t in Nov, up 11 percent YoY; Jan-Dec at 1,899,264t, up 4.83 percent
Chinese domestic TCs unchanged at 2,600-2,800 yuan ($395-425) dlvd incl. VAT
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ANNUAL LEAD CONCENTRATE TCs
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Annual benchmark high silver
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192.5 in 2015, silver RC at $1.50/oz
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197.5 in 2014, silver RC at $1.50/oz
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BHP Billiton (South32) and Korea Zinc agree deal for Cannington concentrate (Australia). Sumitomo's San Cristobal (Bolivia) follows with same numbers
Lowest benchmark since 2007
RCs stable despite low silver price
2016 negotiations only just starting, BHP said to be seeking lower TCs for Cannington. Miners seek lower silver RCs, smelters want higher silver RCs
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Annual benchmark low silver
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222 in 2015
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212-213 in 2014
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2015 deal concluded for Teck's Red Dog conc, based on $2,000/t lead, down from $2,100 base in 2014. Silver RC reportedly lower
2016 negotiations only just starting, smelters hope for rollover but small decline seen likely
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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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