SHANGHAI, Jul 5 (SMM) – Production of refined zinc in China maintained its growth in June as high profits kept smelters in high gear after they overcame capacity bottlenecks.
An SMM survey showed that 496,200 mt of refined zinc was produced across China last month, up 3.34% from May and 15.37% from June 2018. Surveyed capacity remained unchanged at 6.085 million mt/year.
A production ramp-up after the relocation of Zhuzhou Smelter and the resolution of environmental woes at Hanzhong Zinc Industry, combined with a recovery from maintenance at West Mining and Sihuan Zinc & Germanium boosted output in June.
Output also grew as smelters stepped up operations and used higher-grade feedstock.
Those increases offset output declines caused by maintenance at Anhui Tongguan, the suspension of Chengzhou Mining & Metallurgical as well as lower production at Chihong Zinc & Germanium’s smelter in Yunnan.
In July, Zhuzhou Smelter is expected to reach full capacity, while production at Anhui Tongguan, Chihong Zinc & Germanium and Sihuan Zinc & Germanium will recover.
Northern smelters such as Henan Yuguang and Zhongse Zinc will begin routine maintenance in summer, while Chengzhou Mining & Metallurgical is unlikely to recover.
China’s output of refined zinc is expected to increase by 2.41% month on month to 508,200 mt in July.
