Re Red Dog:
The Vancouver, Canada-based company said that shipping from Red Dog will begin in around seven days with one barge operational and that repairs to the other barge will be completed in around four weeks.Red dog
“This will affect the timing of customer deliveries,” Teck said. “Barring unforeseen severe weather conditions,
Red Dog expects to ship all of its production during the shipping season, despite the mechanical incident.”
So short term there may be slightly lower TC (but with Antamina back in the market don’t expect too much) but they will make that up shipping more in a shorter time pushing the TCs back up - but don’t let the facts get in the way of a good story
A large part of the run up in zinc and base metals for that matter is due to China speculative money being encouraged by the Chinese Govt. You only have to look at the trading volumes for that:
https://www.reuters.com/article/us-metals-exchanges-ahome/column-trading-volumes-show-a-metals-world-that-is-out-of-synch-idUKKBN24B17OMeanwhile zinc metal premiums in China are flat:
Shanghai zinc premiums hold in static market
Zinc premiums were unchanged week on week in China due to a closed import arbitrage window that muted buying appetite. Fastmarkets’ assessment of the zinc SHG, min 99.995%, ingot premium, cif Shanghai stood at $70-80 per tonne on Tuesday, unmoved from a week earlier. The corresponding zinc min 99.995% ingot premium, in-whs Shanghai maintained $80-90 over the same period. “Domestic demand has slowed down compared with May and June, and the import arbitrage loss is still there around 280-700 yuan per tonne in the past week, so import demand is non-existent,” a Shanghai-based trader said.
