Spot treatment charges for imported zinc concentrates paid to Chinese smelters are in the range of $140-155/mt in June, up around 5% from $135-145/mt in May, Chinese zinc industry sources said Tuesday.
The increase for the second month in a row was attributed to ample local supply. In April, TCs were lower at $130-135/mt.
"TCs are higher at $140-155/mt this month, but there are very few imported concentrate deals," a zinc concentrate dealer in Northwest China said. "Nobody is buying, resulting in [overseas mines offering] higher TCs."
In Southwest China, another source with a zinc smelter that has inked no imported concentrate deals for June said: "There is currently ample concentrate supply in China, reducing the need for imported concentrates."
She said Chinese domestic mines will pay TCs of Yuan 5,200/mt ($832/mt) in June, up Yuan 50/mt from May.
TCs, the fees paid to smelters by mines for converting concentrates into refined zinc, are a key source of revenue for smelters.
China only imported 125,800 mt of zinc concentrates in April, down 21% year on year, latest General Administration of Customs data showed.
It imported 675,646 mt over January-April, up 17% year on year.
Chinese metals consultancy Beijing Antaike in January said the startup of several new zinc mines in China over 2013-2015 would result in fewer imports.
