Zinc, lead TCs unchanged despite Glencore restarts; market eyes on 2018 smelter output

By Echo Ma / January 03, 2018 / www.metalbulletin.com / Article Link

Zinc and lead concentrate treatment charges (TCs) were little changed throughout December despite Glencore's decision to restart production at its Lady Loretta mine in Australia in 2018.

Glencore will add 100,000 tonnes of zinc - or roughly 200,000-220,000 tonnes of zinc concentrates - to the market in 2018 via the restart at Lady Loretta and will subsequently ramp up another 60,000 tonnes per year of capacity, it said during a December 12 call with investors and market analysts.Glencore in 2015 cut half a million tonnes of mined production in response to tumbling zinc prices at the time.The 6.6% increase in London Metal Exchange three-month zinc prices since Glencore's announcement indicates that the restarted capacity is lower than the market had expected"That should easily be absorbed - 400,000 tonnes may have dented the market but I doubt 100,000...

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