Production enthusiasm extends gains in Oct zinc output

SHANGHAI, Nov 7 (SMM) – Output of refined zinc in China stood at 459,300 mt in October, up 2.81% from a month earlier but down 8.29% from a year earlier. This brought the output in January-October to 4.426 million mt, standing 8.29% lower than the same period last year.

Treatment charges (TCs) for zinc concentrate extended their gains in October as inflows of seaborne materials ensured adequate supplies in China's zinc concentrate market. This, together with relatively high zinc prices, expanded profit margins across smelters and fuelled production enthusiasm that bolstered zinc output.

In October, Western Mining recovered output from maintenance, Baiyin Nonferrous Metals stepped up operation, and Luoping Zinc & Electricity also further recovered output. Meanwhile, maintenance continued at Hanzhong Zinc and Henan Yuguang Zinc and this capped the gains in overall zinc output and slowed annual growth from last year.

Production schedules across smelters show that zinc output is expected to gain 0.65%, or 3,000 mt, in November, standing at 462,200 mt, down 9.25% compared to a year ago. This is likely to narrow the year-over-year contraction in year-to-date output to some 1.84%.

Maintenance at Yuguang is expected to extend into November while Hunan Xuanhua would recover partial output.