SHANGHAI, Feb 8 (SMM) – China's refined zinc output stood at 542,000 mt in January, falling 11,200 mt or down 2.02% on month and up 2.6% on year. Zinc smelters produced 78,600 mt of zinc alloy in January, basically flat from the previous month. Among them, mineral zinc output stood at 435,000 mt in January.
SMM survey showed that domestic refined zinc output decreased slightly more than expectations in January. The decline in domestic TCs for 50-grade zinc concentrates slowed in January. The main reason was that zinc prices fell from a high level and smelters' profits shrank severely. Therefore, zinc smelters in some areas lowered their production plans, while smelters in Hunan stopped production during the CNY ahead of schedule. The reduction is mainly concentrated in the routine maintenance of domestic smelters.
China's refined zinc output is expected to decrease 64,000 mt to 547,200 mt in January as the number of natural monthly days in February decreased by 3 days from the previous month, domestic small smelting companies suspended production for the CNY holiday, and some domestic refineries have regular maintenance during the CNY.
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