In July 2023, SMM China's refined zinc output was 551,100 mt, a decrease of 1,400 mt or 0.26% month-on-month, and a year-on-year increase of 15.79%, slightly exceeding expectations. From January to July, the cumulative output of refined zinc reached 3.777 million mt, a year-on-year increase of 9.59%.
The domestic zinc alloy production in July was 86,983 mt, an increase of 8,756 mt from the previous month. In July, the output reduction of domestic smelters was mainly seen in Inner Mongolia, Shaanxi, Gansu and Xinjiang, and slightly lower than expected. Smelters were basically undergoing maintenance according to plans, and there was no unexpected shutdown except in Xinjiang. Meanwhile, the domestic supply of zinc concentrate was relatively abundant. In addition, zinc prices rebounded slightly in July, and smelter’ profits increased. Some smelters increased production faster after maintenance and contributed part of the growth. Due to the new overhaul of smelters in Hunan at the beginning of August, SMM adjusted the estimated domestic refined zinc output in August 2023, which will fall by 700 mt to 550,400 mt from the previous month, but an increase of 18.94% year-on-year; the cumulative output from January to August will reach 4.328 million mt, an increase of 10.69% year-on-year. In addition to routine maintenance, there were maintenance at smelters in Hunan and the reduction in production affected by the FISU World University Games. Nonetheless, some smelters completed maintenance earlier or postponed maintenance, limiting the drop in output from July.
