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

Published: Aug 09, 2017 16:45 (GMT+8)
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 for 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
Nyrstar Launches Strategic Review of Budel Smelter; Operations Continue Normally
44 mins ago
Nyrstar Launches Strategic Review of Budel Smelter; Operations Continue Normally
Read More
Nyrstar Launches Strategic Review of Budel Smelter; Operations Continue Normally
Nyrstar Launches Strategic Review of Budel Smelter; Operations Continue Normally
Nyrstar has launched a strategic review of its Budel zinc smelter in the Netherlands, citing elevated European energy costs, intense competition for zinc concentrate and historically low treatment charges. The company said Budel has been losing money, while the Dutch government’s decision not to include grid-cost relief for energy-intensive industries in its 2027 budget has added further pressure. The review is expected to conclude by the end of 2026, with operations continuing as normal during the process. Budel has an annual refined zinc capacity of 315,000 tonnes. The smelter was placed on care and maintenance in January 2024 due to high energy costs before restarting in May that year. The review outcome could become an important variable for European refined zinc supply.
44 mins ago
Data: SHFE, DCE market movement (Sep 28)
3 hours ago
Data: SHFE, DCE market movement (Sep 28)
Read More
Data: SHFE, DCE market movement (Sep 28)
Data: SHFE, DCE market movement (Sep 28)
The following table shows the ferrous and nonferrous metals movement on the SHFE and DCE on 28 Sep , 2026
3 hours ago
【Flash | Sivers Targets Over 100 Million Annual InP Laser Capacity】
4 hours ago
【Flash | Sivers Targets Over 100 Million Annual InP Laser Capacity】
Read More
【Flash | Sivers Targets Over 100 Million Annual InP Laser Capacity】
【Flash | Sivers Targets Over 100 Million Annual InP Laser Capacity】
Sivers Semiconductors announced a $30 million expansion of its indium phosphide (InP) manufacturing facility in Glasgow. Upon completion, the site is expected to support annual production of over 100 million CW DFB lasers. Work will begin in H2 2026, with operations targeted for Q4 2027. Sivers linked the investment to anticipated AI datacenter and optical-networking customer ramps and expects InP lasers and semiconductor optical amplifiers to play a growing role in energy-efficient optical connectivity. SMM views the expansion as direct medium-term support for high-purity indium demand. However, current output, utilization and indium intensity were not disclosed.
4 hours ago