SHANGHAI, Apr. 28 (SMM) – China’s zinc concentrate production dropped 8.07% to 942,000 mt in the first quarter, the NBS reported.

Enhanced efforts to reduce pollution and improve production security shut down many illegal zinc mines in Q1. In addition, lower zinc prices squeezed margins for mining companies. SMM #1 zinc prices averaged RMB 15,736.4/mt in March, down RMB 450.3/mt on the month. Meanwhile, TCs for Chinese zinc concentrate only increased marginally to RMB 50/mt to RMB 5,400-5,500/mt. Both factors resulted in a year-on-year decline in Q1 concentrate output.

For March alone, zinc concentrate production grew 12.3% YoY to 429,000 mt.

By region, Guizhou’s zinc concentrate output surged 512.08% on the year to 32,000 mt in March, and that in Xinjiang climbed 86.2% to 9,000 mt. In Hunan province, zinc concentrate production grew 15.1% to 50,000 mt, and that in Inner Mongolia edged up 1.2% to 156,000 mt.

Fujian’s zinc concentrate output tumbled 70.2% YoY to 6,000 mt, while Sichuan’s output plunged 63.9% to 13,000 mt. Guangxi witnessed a 43.7% fall in zinc concentrate output to 23,000 mt, and Guangdong saw an output decline of 25.9% to 9,000 mt. Gansu’s zinc concentrate output dropped 22.2% to 23,000 mt. Output in Shaanxi and Yunnan was 31,000 mt and 5,000 mt, respectively, down 19.4% and 11.43%.

As many mines in north China resumed production in April and rising zinc prices encouraged mining operations, China’s zinc concentrate output should increase this month. However, the growth may be small as stress from environmental protection and safety production remains large.