SHANGHAI, Nov. 18 (SMM) - Some lead and zinc mines in Inner Mongolia plan to shut down soon due to lower profit from continuously falling lead, zinc and silver prices, SMM understands.
Lead prices fell 275 yuan per tonne as of November 18 compared with a week earlier. #1 zinc prices dropped 510 yuan per tonne, with #2 silver prices down 30 yuan per kg, according to SMM data.
“Zinc concentrate output in Inner Mongolia is expected to fall to 100,000 tonnes (zinc content) in December, with lead concentrate output down to 40,000 tonnes (lead content),” said an SMM zinc analyst. “But the shutdown will give little impact on North China’s lead and zinc concentrate supply given high inventories at zinc smelters.”
There have been mines in Inner Mongolia’s Hulun Buir shutting down due to low temperatures, and those remaining in production there will also close in early December. Bayannur’s mines will maintain production, though.
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