Metals News
Will China Zinc Consumption Support Higher Zinc Prices? SMM Interviews
industry news
Sep 30,2015

SHANGHAI, Sept. 30 (SMM) – Production at major Chinese zinc smelters increased in August from July, and will downstream demand give a boost to China’s zinc prices? 

According to SMM survey, the average utilization rate at major 45 domestic zinc smelters was 79.48% in August, up 0.67 percentage point from July.

What about zinc downstream producers in China? 

“We are not optimistic over zinc consumption for the foreseeable future, as high inventories and losses at galvanizers paint a gloomy picture of it,” an analyst from Huatai Futures told SMM in a latest interview. 

The analyst said that sluggish production at die-cast zinc alloy producers and zinc oxide would not improve significantly in the short term. 

“High utilization rate at domestic zinc smelters is mainly because current high TCs for zinc concentrate have secured them from suffering big losses, or even made profits, despite of low zinc prices,” the analyst added. 

The analyst also expected that ore supply will remain sufficient in north China during Q4, and that in south China will be relatively tight, but the end of environment protection inspections will help increase ore supply there.  

The article is edited by SMM and is provided for information purpose only. SMM assumes no liability and does not warrant the accuracy, reliability or completeness of information contained or quoted in the article, either express or implied. SMM further disclaims any liability for losses in connection with the information contained or quoted in the article.

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