SHFE zinc futures fluctuated within a range on June 17, with downstream buyers sticking to rigid demand procurement. While tightening supply and declining by-product revenues provided underlying support, persistent weak consumption and elevated inventories kept overhead pressure firmly in place. A marginal dip in stocks did little to alleviate the lingering burden of high stockpiles.
Smelter feedstock economics remained under stress. Domestic concentrate TCs held steady; imported ore prices ticked up, with TC quotes unchanged. Despite high domestic operating rates sustaining restocking demand, the import window remained shut. Deeply negative TCs have crushed margins, forcing some smelters to schedule maintenance. Spot activity was subdued amid an ongoing standoff between buyers and sellers over pricing and annual contract negotiations.
Overseas mine supply avoided major disruptions, but logistical hiccups, freight costs, and FX volatility kept import parity costs elevated. The loss-making nature of importing concentrates is unlikely to reverse soon, limiting the effectiveness of imports as a supply buffer in the near term.
