On May 28th, downstream procurement remained mainly driven by essential restocking demand, with overall market trading sentiment relatively weak. On the supply side, production cuts provided support to zinc prices; however, downstream consumption remained subdued. Yesterday, domestic concentrate treatment charges held steady compared with the previous trading day, while both domestic and imported zinc concentrate prices edged lower.
Domestic zinc concentrate TCs continue to trend lower amid tight market availability. Most smelters currently hold low raw material inventories, and due to ore shortages coupled with low TCs, several smelters in northwest and southwest China have already implemented output cuts.
The tight zinc concentrate supply is unlikely to ease in the near term, while tight supply and firm smelter demand keep TCs under downward pressure, with further declines likely next month.
