Zinc TCs plunge below $200 as Covid-19 supply disruptions endure; lead terms fall in tandem

Treatment charges (TCs) for spot zinc concentrates nosedived in April amid prolonged shutdowns in major producing nations of Peru, Bolivia, Mexico and South Africa, leaving smelters scrambling for material.

Fastmarkets assessed the zinc concentrate TC, cif China at $180-195 per tonne on Friday April 24, a steep 28.6% fall from $255-270 per tonne the previous month. The low end of the range has dropped by $100 per tonne since February.
Spot zinc TCs plummeted due to a surprise crunch in near-term supply; with many mines either shut under lockdown measures or experiencing difficulty in shipping cargoes to East Asian ports.
There is limited available concentrate on offer, though Australian and Eritrean concentrates are being bid at increasingly steeper terms. One outlying zinc deal was reported to Fastmarkets with TCs paid at $150 per tonne, while there were several deals for clean cargoes reported between $180 per tonne and $195 per tonne.

Falling spot zinc terms reflect an unprecedented switch in the market, following a 12-year high 2020 benchmark TC of $299.75 per tonne settled between smelters and Teck...

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