SHANGHAI, May 22 (SMM) - Zinc prices rocketed in 2016, but edged up on average so far this year. Will supply tightness story continue to support zinc prices? How will the zinc industry react in the face of challenges such as tightening bank loans, cool down in the real estate market and strict environmental prospection?
SMM interviews some major industry insiders about these issues at the SMM 2017 Lead & Zinc Summit.
SMM: What do you think of the environmental protection and safety inspections in 2017? Will mines be affected this year or in the next few years?
One large mining company from Southwest China said local governments frequently execute checks, but they do not need to suspend production. The loss from environmental protection-driven suspension will be severe. Environmental protection will add to input of labor and capital.
Local governments and producers have the same goal. The former hopes producers will meet environmental protection requirements, and producers hope to maintain normal production. It is lose-lose situation if producers cease production, which will affect governments’ tax income and also bring losses for producers. Environmental protection may increase cost from such as water treatment. But effects on producers are limited since they have gotten ready for this issue.
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