China Environment Protection Inspections Hit Zinc Smelters Most across Whole Industrial Chain

SHANGHAI, May 21 (SMM) – The introduction of stricter environment protection inspections has posed a big impact on the whole zinc industry chain in China, with smelters suffering the most, Shanghai Metals Market reports from the 2015 Lead&Zinc Summit.  

“Environment measures matter the survival of zinc smelters considering costs in disposing waste gas, water and residue,” said Zhang Wanbao, general manager of Inner Mongolia Xing'an Copper and Zinc Smelting. 

Nearly half of zinc smelters are making loss despite current TCs for domestic zinc concentrate at 5,500 yuan per tonne, Zhang explained at the 2015 SMM Lead&Zinc Summit, with the rest running at meager profits.  

Annette Huang, chief representative at International Zinc Association, echoed Zhang’s view, saying zinc smelters suffer the most from stringent environment measures. 

“It will be still difficult for domestic zinc smelters to make profits even if zinc prices rise above 17,000 yuan per tonne,” Annette added at the summit.  

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