On June 2, the afternoon session saw prices edge higher, though support remained weak. In the morning, market sentiment was cautious, with overall trading activity subdued. On the supply side, tightening availability and declining by-product revenues from smelting jointly supported zinc prices; however, downstream demand remained soft, and inventories stayed persistently high, limiting upside potential.
Domestic concentrate treatment charges (TC) on June 2 were unchanged from the previous trading day, as were domestic zinc concentrate prices. Imported zinc concentrate prices rose slightly compared to the prior session, while mainstream TC quotations held steady. Current sentiment in the zinc concentrate market is increasingly divided: miners, facing tight spot supply and low TCs, are holding firm on offers amid reluctance to sell, maintaining high price levels; smelters, pressured by elevated raw material costs, are purchasing cautiously on a need-to basis.
The market widely expects treatment charges to remain under pressure and fluctuate at low levels due to ongoing ore tightness. The domestic zinc concentrate market is likely to sustain a pattern of constrained mine supply and continued downward pressure on TCs.
