SUZHOU, Dec 4 (SMM) – It is estimated that the newly added capacity of overseas mines in 2021 will be 351,000 mt, said Darius Li, SMM's Senior Analyst of Zinc research,
"From January to October 2020, imported zinc concentrates totalled 2.713 million mt, up 38.1% year-on-year. China's zinc concentrate imports stood at 410,700 mt in October, up 142,400 mt from July. Arrivals of imported zinc ore at smelters in Q1 2021 remain as the market focus," Li gave his insights on the zinc market on Friday, at the Shanghai Metals Market’s 2020 Nonferrous Metals Industry Chain Annual Conference held in Kempinski Hotel Suzhou.
source: SMM
"Mines in Peru and Bolivia reduced and stopped production in H1 2020 and some new production capacity in 2020 delayed commissioning amid Covid-19. It is estimated that the newly added capacity of overseas mines in 2021 will be 351,000 mt."
source: SMM
source: SMM
Li noted that overseas refined zinc has been less affected by Covid-19. Cajamarquilla of NEXA in Peru has reduced production since March 17, then gradually recovered; Skorpion of Vedanta in Namibia suspended operation since March 27; and HZL smelter temporarily suspended operation for 2 to 3 weeks. In H2 2020, AZR resumed production and Penoles expanded production. Domestic smelters gradually increased production in H2 2020, and refined zinc output reached a record high.
source: SMM
Li also expects zinc prices to rise before falling in 2021. "LME zinc prices are expected to trade between $2,300-3,000/mt. SHFE zinc prices are expected to trade between 18,000-22,500 yuan/mt."
