time for producers to make hay, after smelters were creaming it in 2019; seems like those calling the covid dip early in the year to be short lived, or at the start of the year calling 300+ for the foreseeable future were way off!
from metalbulletin (rest of article behind paywall unfortunately)
Zinc TCs down 40% on LatAm supply disruptions, short covering
Zinc concentrate treatment charges (TCs) have fallen sharply in September 2020, reversing a three-month upward trend because of supply tightness from South America, amid continuing disruptions resulting from the Covid-19 pandemic, putting pressure on traders and smelters to cover short positions.
Fastmarkets’ most recent assessment of the zinc spot concentrate TC, cif China, was $100-120 per tonne on Friday September 25. This was down by 38.9% from the previous range of $170-190 per tonne at the end of August.
Strong demand from Chinese, South Korean and other global smelters, coupled with tightened supply, led to the falling terms for both zinc and lead concentrates.
NCZ Price at posting:
14.0¢ Sentiment: Buy Disclosure: Held
