Limited resumption grows production of refined zinc in Aug

SHANGHAI, Sep 6 (SMM) – Resumption after maintenance raised output of refined zinc across Chinese smelters to 418,700 mt in August, up 2.52% from July, but down 6.11% from a year ago. Total output in the first eight months of the year gained 0.66% on the year and stood at 3.52 million mt.

Resumed volumes were limited as some smelters ended maintenance last month. Profit margins remained thin even as higher concentrate treatment charges (TCs) offset part of losses across smelters when zinc price slumped. Some showed less production enthusiasm given nationwide environmental probes and technical difficulties.

Chihong Zinc & Germanium in Hulunbuir of Inner Mongolia, Xing’an Copper & Zinc Smelting, Chifeng Zhongse Zinc, and Gansu Chengzhou Mining Group resumed part of their production. Bayannaoer Zijin Nonferrous Metal underwent regular overhaul, and Hanzhong Zinc Industry cut production slightly last month. 

Output of refined zinc is expected to grow 14,600 mt from August to stand at 433,200 mt in September. This will be down 8.31% from a year ago. Year-to-date output through September is likely to decrease 0.41% on the year. Most smelters will recover from maintenance this month, but resumed volumes will remain limited. Western Mining in Qinghai province plans to conduct maintenance in September.