Exclusive: China's refined zinc output rose 3.3% on the month to 509,100 mt in August

Published: Sep 08, 2020 14:15 (GMT+8)

Save

China's refined zinc output stood at 509,100 mt in August, rising 16,300 or up 3.3% on month and up 1.98% on year.

SHANGHAI, Sep 8 (SMM) — China's refined zinc output stood at 509,100 mt in August, rising 16,300 or up 3.3% on month and up 1.98% on year. Output totalled 3.87 million mt in the first eight months of this year, up 3.68% from the same period last year.

China's refined zinc output in August was higher than expectations as the treatment charges (TCs) for domestic zinc concentrate (Zn 50%) rose to 5,450 yuan/mt (Zn content) from the previous month. The continued rise in zinc prices improved profits, prompting smelters to increase production. In addition, some smelters in Gansu, Hunan, Inner Mongolia and other regions resumed production after the maintenance. The reduction of refined zinc was mainly concentrated in smelters in Henan, Guangdong and Inner Mongolia which were undergoing maintenance.

Although TCs for zinc concentrate in some areas fell on a month-on-month basis, the composite TCs were still at a high level in September. High profits prompted smelters, except some in Gansu which are under maintenance, to ramp up production.

Zinc smelters produced 78,000 mt of zinc alloy in August, up 3.94% from the previous month, according to SMM survey. SMM expects refined zinc output to increase 36,900 mt to 545,900 mt in September.

Refined zinc Output

Data Source Statement: Except for publicly available information, all other data are processed by SMM based on publicly available information, market communication, and relying on SMM's internal database model. They are for reference only and do not constitute decision-making recommendations.

For any inquiries or for more information, please contact: lemonzhao@smm.cn

For more information on how to access our research reports, please contact:service.en@smm.cn

Related News

3 mins ago

Silver Bow Mining Proposes US$88 Million Funding and Credit Support Package with Ocean Partners

Silver Bow Mining announced a non-binding term sheet with Ocean Partners UK for approximately US$88 million in funding and credit support to advance the restart of Rainbow Block, refurbishment of the Jefferson County Metallurgical Complex and working capital requirements in Montana, US. The proposed package comprises a US$40 million concentrate prepayment facility, up to approximately US$43.1 million in reclamation bond guarantees and a US$5 million lead commitment in a future equity financing. Approved replacement bonds are expected to release approximately US$42 million in cash collateral. The associated ten-year offtake would cover all future lead and zinc concentrates from Rainbow Block and ores outside Montana Tunnels’ M-Pit, plus one-third of those from M-Pit ores, with no minimum tonnage or take-or-pay obligations.

3 mins ago

1 hour ago

Macro sentiment is weak, zinc prices encounter resistance [SMM Zinc Morning Comment]

[SMM Zinc Morning Comment] Overnight, SHFE zinc recorded a bullish candlestick with a long upper shadow, with support from the middle Bollinger Band below, and the KDJ gap widening upward. On the fundamentals side, the ore shortage has yet to improve, TCs remain low, and bottom support is relatively strong. However, expectations for US Fed interest rate hikes have increased, compounded by...

1 hour ago

Zinc Prices Under Pressure as Expectations for US Fed Interest Rate Hikes Heat Up [SMM Morning Meeting Minutes]

[SMM Morning Meeting Summary: Expectations for US Fed Interest Rate Hikes Rise, Zinc Prices Under Pressure] Overnight, LME zinc recorded a third consecutive decline, with the daily candlestick center edging lower, while the middle Bollinger Band provided support below. Overnight, US Treasury yields rose across the board, and the US September PMI climbed to a multi-year high, reigniting market...

1 hour ago