SHANGHAI, Aug. 5 (SMM)-According to a SMM survey of domestic major zinc smelters, the growth rate of zinc output should fall notably this year. The growth rate of zinc output will rise as new expansion capacities come online in 2H, but short power and raw material supply should continue affecting smelters, so the growth rate is expected to be 5% in 2011.
 
China Nonferrous Metals Industry Association (CNIA) held a press conference in Beijing. The Vice-President and Secretary General Jia Mingxing predicted at the meeting the output growth of 10 kinds of nonferrous metals should be 10% in 2011.
 
According to SMM statistics, the average operating rate at domestic zinc smelters in 1H was 78.96%, down 2.53% from 81.49% the same period of 2010. According to data from CNIA, domestic zinc output in 1H 2011 was 2.529 million mt, up 2.14% YoY.

The growth of zinc output will likely rise in the second half of 2011 as some new expansion capacities come online, including Chifeng Hongye Company’s 100 kt/yr of new expansion project, which caused zinc output of the company to grow in July. But power restrictions are being implemented in some regions as a result of power shortages, causing zinc smelters to cut output or suspend production, and will become even severer in 2H. In this context, the growth of zinc output should remain low during 2H 2011, with approximately 5%.

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