The spot market for zinc concentrates is generally quieter. In Europe, which is in holiday mood, smelters have scarcely been seeking spot material though we do not believe this indicates that they have all already covered their requirements for later this year and next year. This is a shift from a few months ago when many smelters were reporting that they had entered the spot market. Pinpointing representative spot terms under such circumstances is more difficult but, on the basis of the business we have heard of, we believe that terms in Europe are still around 155 dollars/t basis 1,000 dollars/t cif Antwerp.Smelters in Europe are unlikely to be able to negotiate a higher TC for spot material in light of the summer lull in business. Much of the zinc concentrate that is available on a spot basis, now and in future quarters, is in the hands of traders. European smelters have been offered material, which they would like to accept, but more often than not they are currently unwilling to accept the terms on offer (similar to the stance of Europeans lead smelters for some time). With terms in China at approximately 140 dollars/t basis 1,000 dollars/t cif main Chinese port, traders can easily offer future months' mine production that is on their books, particularly from Peru, to Chinese smelters.
展开▼
