SHANGHAI, Feb. 10 (SMM) – China’s Zinc concentrate output dropped in December as winter cold undermined mining operations, Shanghai Metals Market has learned.
The country produced 448,900 tonnes of zinc concentrate in December, up 9.44% year-on-year, but down 11.4% month-on-month. Output for the entire year of 2013 totaled 5.18 million tonnes, an increase of 12.30% from a year ago, according to the National Bureau of Statistics (NBS).
Chifeng NFC Baiyinnuoer Mining Co. put 3,500-tpd project on stream in October. However, this was more than offset by lower operating rates at mines in northwest and northeast China in November and December due to falling temperatures.
Although zinc concentrate output fell, supply remained in surplus, driving treatment and refining charges (TC/RCs) higher. TC/RCs for domestically-mined zinc concentrate have been rising since December, with TC/RCs up by 50-200 yuan ($8-33) per tonne in January. Mainstream TC/RCS for zinc concentrate (50%) were 5,000-5,100 yuan per tonne in January.
SMM expected zinc concentrate output to drop further in January. First, smelters have sufficient raw materials stocks on hand at the moment. Second, colder weather, workers retuning home for the Chinese New Year holiday and an interruption in transport networks around the holiday would take a toll on production.
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