SHANGHAI, Apr 2 (SMM) – Treatment charges (TCs) for domestic copper concentrate in China remained flat from the previous week and stood at 3,200-3,800 yuan per metal mt for the week ended March 30. In the short term, SMM expects domestic TCs to stay flat due to volatile prices of zinc and uncertainty over the supply of concentrates.
Unlike smelters, miners did not raise domestic TCs last week. This was due to lower profits for zinc miners after prices of zinc fell from highs in the week ended March 30. Output of small and medium sized mines located in colder regions areas was also limited, and had little effect on the supply of zinc concentrate.
Last week,TCs for imported copper concentrate inched up $5/dmt to reach $15-25/dmt. The average SHFE/LME zinc price ratio stood at 7.55, slightly down week on week. Imports of zinc concentrate saw average losses of 1,270 yuan per metal mt, this was 50 yuan per metal mt wider on a weekly basis.
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