Zinc concentrate market goes slowly

Zinc ingot market remains weak in China, and zinc concentrate market also goes slowly. Considering the price to rise further, some mines are still reluctant to sell zinc concentrate, while smelters also only purchase with small quantities.
A Shaanxi-based smelter disclosed that they just purchased a batch of zinc concentrate 50%min at around RMB13,000/t (USD1,828/t) delivered to its warehouses from a Henan-based supplier late last week. "As zinc price drops by RMB600/t (USD84/t) this Monday, some suppliers decreased their offers to about RMB12,700/t (USD1,786/t) in local market," said the source
The source reported that as zinc smelters hold large stockpiles of zinc ingot on hand, they are unwilling to purchase raw material with large quantities, in view of capitals turnover. Additionally, some mines think zinc concentrate price may continue to rise further, so they hold on for higher prices. However, the source said the supply of zinc concentrate is still relatively abundant, so it is difficult for the price to rise sharply in the following days.
A zinc mine with a monthly output of 5,000t in Inner Mongolia disclosed that they received more inquiries recently, but concluded deals were still limited. The source offered zinc concentrate 50%min at around RMB12,800/t (USD1,800/t) delivered this Monday, down by about RMB500/t (USD70/t) compared with that last Friday
The source analyzed that the supply of zinc concentrate is comparatively abundant in North China, while the tight supply is seen in zinc concentrate market of South China. "Zinc concentrate price in North China is about RMB500-1,000/t (USD70-141/t) lower than that in South China," said the source, explaining that most mines are still out of production in South China. Looking ahead, the source thinks zinc concentrate price may keep stable for a while and the market trend in long term still depends on the direction of zinc ingot market.
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