SHANGHAI, May 19 (SMM) – China’s refined zinc output will decrease 80,000 tonnes in 2017, SMM zinc analyst predicts at the SMM 2017 Lead & Zinc Summit.
Refined zinc output began to slide in March on a yearly basis. China’s refined zinc output will fall 240,000 tonnes this year due to environmental protection and raw material tightness reasons. New capacities will contribute some 60,000 tonnes of output. When combined with release of capacities coming online in 2014-2015 and increased output planned by a few zinc smelters, China’s refined zinc production may decrease 80,000 tonnes in 2017 from 2016.
Domestic refined zinc output is expected to decrease 3.4% during January-June, 2017.
Zinc supplies will continue to shrink in 2017.
Net cost for production of secondary zinc and zinc using ore as raw material fell 2,500 yuan per tonne from 2016. This incentivized production of such products. Imported secondary goods and galvanizing slag will maintain growth in 2017. But meanwhile capacities using intermediate frequency furnace were forced out of the market. Capacities using electric arc furnace grew slowly. In this scenario, zinc-contained scrap output will only add 1.5% year-on-year in 2017. Secondary zinc output will grow only limitedly.
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