[Zn Ore] China Zinc Concentrate Output Up in May on Higher Zinc Price

SHANGHAI, Jun. 25 (SMM) - China’s zinc concentrate output in May grew 8.7% from April to 464,000 tonnes, despite a 6.51% drop on the YoY basis, NBS data show.

"Increasing zinc concentrate output is due largely to higher zinc prices, which grows mine willingness to produce”, according to Shanghai Metals Market.

SMM #1 zinc prices averaged 16,701 yuan per tonne in May, up 457.7 yuan per tonne from April. Domestic zinc concentrate TCs, however, stabilized between 5,400-5,500 yuan per tonne (Zn 50%, zinc content), SMM data show.

Warmer weather also helped mines in north China to resume production. Output in Inner Mongolia added 25,000 tonnes to 190,000 tonnes, and that in Gansu grew 4,000 tonnes to 31,000 tonnes.

Some mines also restarted from environmental protection inspections. Output in Sichuan increased 14,000 tonnes to 25,000 tonnes. Guangxi grew output by 3,000 tonnes to 36,000 tonnes.

However, zinc concentrate output in Jiangxi fell 5,000 tonnes to 7,000 tonnes, while Shaanxi saw output down 2,000 tonnes to 23,000 tonnes.

"Domestic zinc concentrate output in June is set to grow only slightly on stable production at large mines and falling zinc prices”, SMM zinc analyst foresees.

China’s zinc concentrate output in the first five months of this year was 1.81 million tonnes, down 11.09% YoY, NBS reports.

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