How Sichuan Earthquake Affects Zinc Concentrate Output? Where is Zinc Price Going? SMM Reports

Published: Aug 9, 2017 16:45
A 7-magnitude earthquake shocked Jiuzhaigou County, Aba prefecture, Sichuan Province at 9:19 pm August 8.

SHANGHAI, Aug. 9 (SMM) - A 7-magnitude earthquake shocked Jiuzhaigou County, Aba prefecture, Sichuan Province at 9:19 pm August 8. Mines and zinc smelters in Sichuan were little affected so far due to long distance from epicenter, SMM finds. They are able to maintain normal production. 

Lead-zinc mines affected are mainly those in Gansu’s Longnan City, which is located only about 100 km away from epicenter, SMM finds. Longnan is one of major domestic lead-zinc ore producing regions. Gangsu Province produces some 330,000 tonnes (zinc content) of zinc concentrate output each year, of which, over 60% is contributed by Longnan, SMM survey showed.

SHFE Zinc Surges to 6-Month High after Sichuan Earthquake, SMM Reports

The earthquake was strongly felt in Longnan, and Longnan Work Safety Administration required local mines to suspend underground operation, but did not disclose when they will be allowed to restart. Dressing plants are not affected, though. The impact on local zinc concentrate production will be limited, SMM predicts.

Domestic zinc concentrate output will see limited growth this year with constraints from environmental protection and lower-than-expected new capacity commissioned, SMM foresees. The growth may be only 150,000 tonnes (zinc content) this year. Growth at overseas mines will be steady, SMM added.

Did Strong Earthquake in Xinjiang Impact Local Aluminum Plants and Lead-Zinc Mines? SMM Reports

Growth in global zinc concentrate output will be dragged down by China. Limited concentrate growth will in turn restrict refined zinc output. So, fundamentals will continue to bolster zinc prices in the foreseeable future, SMM said.

For news cooperation, please contact us by email: sallyzhang@smm.cn or service.en@smm.cn. 

 

 

Data Source Statement: Except for publicly available information, all other data are processed by SMM based on publicly available information, market communication, and relying on SMM‘s internal database model. They are for reference only and do not constitute decision-making recommendations.

For any inquiries or to learn more information, please contact: lemonzhao@smm.cn
For more information on how to access our research reports, please contact:service.en@smm.cn
Related News
East China Zinc Ingot Inventory Rises, Consumption Weakens Amid Fluctuating Futures Prices
16 hours ago
East China Zinc Ingot Inventory Rises, Consumption Weakens Amid Fluctuating Futures Prices
Read More
East China Zinc Ingot Inventory Rises, Consumption Weakens Amid Fluctuating Futures Prices
East China Zinc Ingot Inventory Rises, Consumption Weakens Amid Fluctuating Futures Prices
[Refined Zinc Market] According to SMM data, social inventory of zinc ingots in east China continued to accumulate. The market had ample overall supply with a large number of traders making shipments. However, zinc futures prices fluctuated, and coupled with weakening off-season orders from downstream zinc consumers, refined zinc consumption in the east China market performed poorly.
16 hours ago
China Zinc Mine to Resume Production in June, Adding 500 mt Metal Content
16 hours ago
China Zinc Mine to Resume Production in June, Adding 500 mt Metal Content
Read More
China Zinc Mine to Resume Production in June, Adding 500 mt Metal Content
China Zinc Mine to Resume Production in June, Adding 500 mt Metal Content
[Zinc Concentrates Production Information] According to SMM, a zinc mine in southwest China continued to suspend production in May and plans to resume production in June, which is expected to bring an increase of approximately 500 mt in metal content.
16 hours ago
Southwest China Zinc Mine Boosts Output by 1,000 mt in May Due to Higher Ore Quality
16 hours ago
Southwest China Zinc Mine Boosts Output by 1,000 mt in May Due to Higher Ore Quality
Read More
Southwest China Zinc Mine Boosts Output by 1,000 mt in May Due to Higher Ore Quality
Southwest China Zinc Mine Boosts Output by 1,000 mt in May Due to Higher Ore Quality
[Zinc Concentrates Production Information] According to SMM, a zinc mine in southwest China saw an increase of approximately 1,000 mt in metal content in zinc concentrates production in May due to improved raw ore grade. SMM will continue to track subsequent operations.
16 hours ago