How Much Support Zinc Price Gains from China Overwhelming Environmental Protection Push? SMM Reports

Published: Jul 20, 2017 17:02 (GMT+8)

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China has executed strict environmental protection inspections in the first half of this year. How did this bolster zinc prices?

SHANGHAI, Jun. 20 (SMM) – China has executed strict environmental protection inspections in the first half of this year. How did this bolster zinc prices?

China’s environmental protection checks affected zinc supplies by preventing zinc mines from restarts, SMM said.

WBMS: World Zinc Deficit Shrinks January-May from 2016

Safety and environmental protection checks in Sichuan, Hunan and Inner Mongolia restricted output release in the first half of the year. Hence, SMM revised forecast of annual zinc concentrate output growth from 200,000 tonnes (zinc content) in early this year to 150,000 tonnes (zinc content).

Zinc Spot Premiums Exhibit Mixed Trend in China Major Markets, SMM Reports

Galvanizers and zinc oxide plants in north China weathered environmental protection checks in April. But such influence only lasted for two months. End-user orders shifted to other regions, SMM noted.

On the heels of such checks, demand recovered rapidly in mid-to-late May, and this helped deplete zinc inventories, SMM said.

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zinc prices TCs zinc concentrate zinc inventories LME zinc prices SHFE zinc prices zinc ore zinc supply

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