Refined zinc production gains 6.7% in Sep

SHANGHAI, Oct 12 (SMM) – Resumption from maintenance raised output of refined zinc across Chinese smelters to 446,700 mt in September, up 6.7% from August, but down 5.46% from a year ago. Total output in the first nine months of the year fell 0.07% from 2017 and stood at 3.97 million mt.

Last month, smelters in Inner Mongolia returned to operation after maintenance, with only Western Mining in Qinghai province under routine overhaul. 

Concentrate treatment charges (TCs) gained significantly as imports grew supplies and domestic mines operated as usual. Higher TCs, together with higher prices of zinc in September buoyed profit margins across smelters. 

Output of refined zinc is expected to grow 11,700 mt, or 2.62% from September to stand at 458,400 mt in October. This will be down 8.46% from a year ago. Year-to-date output through October is likely to decrease 1.01% on the year. 

Production will recover at Western Mining this month, with output extending gains at Baiyin Nonferrous Metals and Luoping Zinc & Electricity. Production cuts at Hanzhong Zinc and maintenance at Henan Yuguang Zinc will affect overall output.