Huludao Zinc Receives RMB 9.23 Mln Fiscal Subsidy, Operating Rates at Smelters Hit Record High

SHANGHAI, Jan. 14 (SMM) -
Huludao Zinc Receives RMB 9.23 Mln Fiscal Subsidy

Huludao Zinc Industry Company which will likely be excluded in listed companies received the Notice of the Ministry of Finance Regarding Giving Interest Subsidies on Imported Commodities in 2012 for State Owned Enterprises. The company and its holding subsidiary Huludao Nonferrous Metals (Group) Import & Export Company received interest subsidies for imported goods in 2012 from the Ministry of Finance totaling RMB 9.2388 million. 
 
Operating Rates at Smelters Climb Further, Domestic Zinc Concentrate Output Up Slightly in November

According to the China Nonferrous Metals Industry Association (CNIA), domestic zinc concentrate output in November was 463,600 mt, up 0.13% MoM. YTD output from January through November was 4.6403 million mt, up 15.20% YoY.
According to a recent SMM survey, operating rates at domestic smelters climbed to a record high for the year in November. Demand for zinc concentrate also improved, and combined with rising TC, smelters became more willing to purchase raw materials. Enterprises in north China continued to replenish stocks for winter production as well, which also helped increase output from mines. 
 
Zinc Concentrate Imports Fall in November Due to Sufficient Domestic Supply

According to China Customs, China's zinc concentrate imports during November were 175,800 mt, down 13.4% MoM, and down for a third straight month. YTD imports from January through November were 1.7629 million mt, also down 33.61% YoY.

Operating rates at zinc smelters hit a yearly high during November. The SHFE/LME zinc price ratio was around 7.9 from October to early November, but demand for imported zinc concentrate was still down sharply, and SMM believes a surplus of domestic ore was to blame.

Zinc Imports Grow in November on Rising SHFE/LME Zinc Price Ratio in October

Data from China Customs showed China imported 38,600 mt of zinc in November, up 17.5% MoM. YTD imports from January through November were 446,700 mt, up 52.0% YoY. Although imports were up from October levels, they were still below the monthly average for  the first 11 months of 2012.