Chinese Zinc Smelters Lose Profits as Treatment Charges Hit Record Minus $50 a Ton
Updated
Updated · Bloomberg · Jun 10
Chinese Zinc Smelters Lose Profits as Treatment Charges Hit Record Minus $50 a Ton
3 articles · Updated · Bloomberg · Jun 10
Summary
Imported zinc concentrate treatment charges in China fell to minus $50 a ton, a record low in Fastmarkets data over the past decade, wiping out smelters' profits.
A worsening shortage of feedstock is driving the collapse in fees for processors that depend heavily on imported ore.
China produces about half of the world's refined zinc, used mainly to galvanize steel, making the pressure on its smelters significant for global supply.
Negative treatment charges last hit the industry in 2024, when smelters cut output to curb losses, signaling renewed risk of production curbs.