SMM Zinc Lead Summit: Miners, smelters see mixed profitability in 2018

CHENZHOU, Apr 2 (SMM) – Zinc and lead mining and beneficiation firms in China saw a profit margin ratio of 24.6% in 2018, some 10 percentage points higher than that of mines across the country. The profitability of zinc and lead smelters came in much weaker than the average level of the overall smelting industry, said Peng Tao, Secretary General of Lead and Zinc Branch of the China Nonferrous Metals Industry Association.

In 2018, profits across 688 zinc and lead enterprises above a designated size fell 27% from 2017 to stand at 21.38 billion yuan, accounting for 13% of the nonferrous complex, according to data that Peng shared at the SMM Zinc and Lead Summit on Tuesday April 2 in Chenzhou, Hunan province.

Profits across 387 miners stood at 19.3 billion yuan, down 4.5% year on year, while 301 smelters posted a 7.7% decline in profits, which came in at 2.1 billion yuan.

Peng also mentioned that investment in zinc and lead industry extended its declines in 2018. Investment in zinc and lead mining and beneficiation lost 2.7%, much smaller than the decline of 20.9% across smelting and refining stages.