Davis Index: Market Intelligence for the Global Metals and Recycled Materials Markets

China Minmetals has proposed a new zinc smelters group in the country after treatment charges fell to a two-year low. 


According to media reports, Xu Jiqing, general manager of Minmetals’ Nonferrous Metals group proposed the formation of the group at the China Lead and Zinc conference in Chengdu in the Sichuan province. He indicated that the group would be set up on similar lines as the existing copper purchase team, which consists of 12 smelters that meet every quarter to set floor rates for copper concentrate treatment charges.


The idea was floated days after spot prices for zinc ore treatment in China fell to $95/mt, compared with the $299.75/mt global benchmark set jointly by Teck Resources and Korea Zinc. According to Jiqing, the proposed group will protect zinc smelters from accepting rates that are much lower than the global benchmark by creating a floor rate below which offers will neither be made nor accepted.


Minmetals is one of the largest zinc smelters in China, operating through its subsidiary Zhuzhou Smelter Group. The company also holds zinc mines in Australia.  

Leave a Reply

Your email address will not be published.