Dipping TCs and Sulphuric Acid Prices Weighed on Refined Zinc Output

SHANGHAI, May 9 (SMM) - The refined zinc output in China declined 16,700 mt or 3.01% month-on-month, but rose 8.97% year-on-year to 540,000 mt.  The output totalled 2.11 million mt from January to April, up 7.22% year-on-year. The alloy output registered 87,385 mt in April, up 4,775 mt on the month.

In April, the TCs for domestic zinc ore fell to 4,800-5,000 yuan/mt in metal content. The dipping TCs and sulphuric acid prices weighed on zinc prices, hence the profits of zinc smelters were squeezed. But smelters have not reduced production yet. Even with the routine maintenance of smelters in Yunnan, Shaanxi, Hunan, Gansu and Inner Mongolia, the stable production of other smelters and the overload of smelters in Henan and Gansu drove up the output in April to exceed the forecast.