SHANGHAI, Jun. 9 (SMM) – The average operating rate at major Chinese zinc smelters is expected to fall to around 70% in June, Shanghai Metals Market learns.
The decline will be due mainly to production suspension and unit maintenance, according to SMM survey of 41 enterprises, with capacity totaling 5.69 million mt, 120,000 mt of which is idle.
The latest SMM survey finds that output at Luoping Zinc & Electricity Company will continue to grow in June, while output should remain stable at Huludao Zinc Industry Company, Chihong Zn & Ge, Bayannur Zijin Nonferrous Company, and Jiangxi Copper’s Lead & Zinc Smelter following the completion of maintenance. Gansu Chengzhou Mining and Metallurgical Group are expected to restart operations in mid-June. But, production suspension at Hunan Taifeng Mining Group from early June, and unit maintenance at Hanzhong Zinc Industry Company and Yuguang Zinc Industry Company, will push down the average operating rate in June.
The rate at those producers was 71.46% in May, down 1.08 % from April, but slightly higher than the same period last year, the survey showed.