Treatment charges (TCs) for lead concentrates rose to three-year highs late in September when smelters in China trimmed output ahead of national holidays and a negative arbitrage ratio remained in place for imports, while zinc TCs have also narrowed.
The loss on bringing refined lead into China - which traded around a range of 700-2,000 yuan ($98-281) per tonne over September - and a slump in demand after week-long suspensions at Henan-based lead smelters for the October 1-7 celebration of the 70th anniversary of the founding of the People's Republic of China both dramatically weakened appetite for lead concentrates. Fastmarkets' assessment of the lead spot concentrate TC, high silver, cif China rose to $100-120 per tonne on September 27, its highest since September 2016 and double the August assessment of $50-80 per tonne. Although the month-to-month increase is substantial, the market remains roughly balanced for concentrates - a TC of $100 per tonne on lead concentrates is quite low, historically."The market is a little more reasonable but still tight," a producer source told Fastmarkets. Fastmarkets' assessment of lead spot concentrate TCs, low silver, cif China rose to $80-100 per...