[SMM analysis] the influence of Red Dog ore transportation on zinc is limited.

SMM7, March 8:

Teck Resources announced on July 7 that on July 3, 2020, one of the two main transport barges in operation at the Red Dog mine loading port broke down and the loading barge of the second transport barge at the port had been tested and the second transport barge was able to maintain normal operation, an incident that did not cause related human injury or environmental impact. However, this incident will affect the pace of its shipment. according to Teck resources, the maintenance of the faulty barge will be completed in the next 4 weeks, and the shipment of the, Red Dog mine will be carried out in the next 7 days under the condition that only one shou barge is put into operation, which will affect the delivery time to customers. However, Teck Resources believes that despite such mechanical accidents, the, Red Dog mine is expected to ship all its products within the shipping season unless there is unforeseen bad weather.

Red Dog Mine is one of the top ten zinc mines in the world, with an annual output of 552400 tons in 2019. Overall, the production of, Red Dog mine has not been affected, only mine shipments have been affected, the impact on zinc prices is limited, but in the context of a sharp rise in market risk appetite, this event constitutes an emotional positive for the zinc market.

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