Zinc prices maintained narrow-range fluctuations at high levels, as tightness in the ore market continued to deepen.
Downstream procurement sentiment was decent during the early session, but buying interest gradually waned as prices advanced, resulting in moderate overall transaction volumes. Fundamentally, global ore supply has fallen short of expectations, shifting pressure downstream to the smelting sector and alleviating the previously prevailing oversupply situation, thus providing solid support to the market. However, constrained by lackluster consumption during the traditional off-season, significant resistance remains above. The market is expected to trade sideways for consolidation in the near term.
From a long term perspective, high sulfuric acid prices continued to offset TC losses, sustaining rigid smelter demand.
According to Mysteel survey data, on May 22, domestic zinc concentrate Treatment Charges (TCs) held steady, while concentrate prices edged down. Conversely, prices for imported concentrates saw an increase. Tightness in the ore market continued to deepen. While production in major domestic mining regions remained stable, incremental supply was limited due to prior environmental restrictions and scheduled maintenance. Additionally, persistent overseas disruptions led to limited shipments to China. Miners were widely holding back stocks and were reluctant to sell at lower prices. Smelters continued to choose domestic ores, pointing to further downside pressure on domestic zinc concentrate TCs.
