Treatment charges for both zinc and lead concentrates fell in the last week of January 2021, moving for the first time since November 27 last year, in Fastmarkets' latest assessments.
Market sentiment played a large part in driving TCs lower, because
even with most producers recovering from the effects of the Covid-19 pandemic on the mining of zinc and lead, significant tenders were concluded at sharper terms.
Fastmarkets' assessment of the
zinc spot concentrate TC, cif China, was $70-85 per tonne on January 29, falling by 6% from $75-90 per tonne on January 15.
Market liquidity has been limited ahead of the Lunar New Year holiday in China, February 11-17, with the low level of TCs dissuading large-scale spot buying by smelters.
"Unless they need the tonnage, smelters will wait until the last moment to buy," a concentrates trader told Fastmarkets.
Chinese smelters wind down production
The domestic zinc concentrate TCs dropped slightly in January, with Northern Chinese mines remaining closed during winter.
Many smelters have wound down their production ahead of the Chinese New Year, pending cuts in the...