SHANGHAI, Dec. 25 (SMM) - Most crude zinc smelters in Jiangsu and Zhejiang cut output or ceased production due to strict environmental protection inspections and falling zinc prices, SMM reports.

Small and medium crude zinc smelters using scrap zinc as raw material in Jiangsu and Zhejiang were forced to cut or halt production in the second quarter of 2015 due to strict control of energy consumption and pollution discharge after the enforcement of Standards for the Lead & Zinc Industry 2015.

“Nearly half of plants in the two regions shut down or suspended production as of June, and some of them have yet to restart for now.” said an SMM zinc analyst.

Meanwhile, zinc prices began to fall sharply since May, weighing down crude zinc prices. Demand from zinc oxide and die-cast zinc alloy producers also softened, dampening crude zinc sales.

“With strict environmental protection inspections, the output cut and shutdowns will continue in 2016 if zinc prices remain low.” the analyst added. 

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