Refined zinc production in September exceeded expectations; October production is expected to continue improving MoM [SMM Analysis]

In September 2024, SMM reported that China's refined zinc production increased by over 2% MoM but decreased by over 8% YoY, surpassing expected values. Among them, domestic zinc alloy production increased by more than 2,000 mt MoM. In September, domestic smelters increased production, mainly due to the recovery from maintenance in smelters located in Sichuan, Gansu, Guangdong, Shaanxi, and Inner Mongolia.

SMM expects that in October 2024, domestic refined zinc production will increase by less than 1% MoM. Overall, smelters' production is expected to continue increasing in October, with the main growth concentrated in Inner Mongolia, Shaanxi, and Hunan, due to post-maintenance production boosts. Meanwhile, reductions are mainly in Gansu due to routine maintenance. Overall, as raw material inventory shortage at smelters slightly eases, production is expected to continue improving.