A major zinc smelter in Inner Mongolia will halt production for a month

Published: Feb 27, 2020 12:08

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A large-scale zinc smelter in Inner Mongolia suspended operations on the afternoon of Wednesday February 26 in response to some incidents, according to sources

SHANGHAI, Feb 27 (SMM) – A large-scale zinc smelter in Inner Mongolia suspended operations on the afternoon of Wednesday February 26 in response to some incidents, according to sources.

The shutdown is expected to last for a month. Annualised refined zinc production capacity of the smelter is around 140,000 mt.

The news will lift short-term market sentiment, but overall weak fundamentals may continue to cap any upsides in zinc futures. The most-traded SHFE 2004 contract extended increase from the previous two days and ended Thursday’s session 0.06% higher at 16,460 yuan/mt.

SMM estimates a decline of 10,000 mt in China’s production of refined zinc in March, with some producers planning to end maintenance and recover production.

Market Commentary Zinc

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