China Zinc Conc. Output Rebounds in August; to Grow on Upcoming New Capacities

SHANGHAI, Sept. 27 (SMM) – China’s zinc concentrate output rebounded to exceed 500,000 tonnes in August and is expected to grow further this month as new ore dressing capacities come on stream.

The country produced 504,200 tonnes of zinc concentrates in August, up 4.46% month-on-month and 7.5% year-on-year. YTD output through August was 3.6 million tonnes, up 11.66% year-on-year, according to data from National Bureau of Statistics (NBS).

Explosive restrictions in Bayannur, flooding in Sichuan province, as well as drought in Hunan province all caused China’s zinc concentrate output to fall in July. Those conditions improved since the start of August.

New lead and zinc ore dressing capacities coming on stream include: Xinjiang Qianxin Mining’s 2,500-tpd project which was put into operation in August, Yunnan Hualian Zinc & Indium’s 8,000-tpd capacity expansion, Baarin Left Banner Hongling’s 2,000-tpd project and Baiyinnuoer’s 3,500 tpd project in Inner Mongolia. In addition, Zijin Mining Group’s 3.30 million-tpy low-grade lead and zinc mining and dressing project in Inner Mongolia is scheduled to come online sometime in September.

Operating rates at zinc concentrate enterprises are expected to remain high through November with recent increases in lead, zinc and silver prices.

Treatment and refining charges (TC/RCs) for domestically-mined zinc concentrates have kept rising from July with oversupplies becoming stern.