SHANGHAI, Oct. 12 (SMM) - Glencore, the largest lead and zinc producer and trader in the world, decided to cut output at its Lady Loretta, George Fisher and McArthur River mines by some 380,000 tonnes (zinc content). The company supplies nearly 700,000 tonnes, or 1/3 of zinc concentrate imports to China each year. Will the output cut by the mining giant weigh down TCs of imported zinc concentrate in China?
TCs of imported zinc concentrate will not drop in the wake of the output cut news soon, according to an SMM zinc analyst. “Zinc concentrate inventories at China’s ports are high, with those at the Port of Lianyungang hitting their highest for the year of 339,800 tonnes as of October 9. Meanwhile, this year’s term contracts have been settled already, and the Company’s output cut in Q4 will be only 100,000 tonnes,”
However, Glencore’s output cut will dampen China’s zinc concentrate imports, so TCs of imported ore should fall in the medium to long term.
Output Cut at Glencore’s Mines
Ore Quantity Mined in 2014 (kt)
Silver Grade (g/t)
Output Cut Plan
Quantity Cut (kt, metal content)
To be suspended
North (L72) & South (P49) Orebodies
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