Treatment charges (TCs) for lead concentrates rose in June after a price arbitrage that encouraged imports closed off, and major supplying mine Pe??asquito returned to the market after a month-long layoff.
Fastmarkets assessed TCs for low-silver lead concentrates at $20-30 per tonne on Friday June 28, up from a 19-month low of $5-15 per tonne on May 31.A closed import arbitrage into China was exacerbated by several major smelters undertaking scheduled maintenance work in June, limiting the spot demand for concentrates.Newmont Goldcorp's Pe??asquito polymetallic mine in Mexico resumed output on June 17 after a blockade had hindered production since late April.Pe??asquito produces 90,000 tonnes per year of lead in concentrate and 200,000 tpy of zinc in concentrate, and locks in the majority of its output to supply contracts with major smelters.Those smelters which had been covering short positions in April-May have been deferring trader frames and reverting to their contracts with the mine, sources...