Exclusive: China's refined zinc output fell 1.22% on the month to 562,300 mt in November

SHANGHAI, Dec 8 (SMM) – China's refined zinc output stood at 562,300 mt in November, falling 6,800 mt or down 1.22% on month and up 5.94% on year. For January-November, output totalled 5.55 million mt, up 4.57% from the same period last year. Zinc smelters produced 81,800 mt of zinc alloy in November, flat from the previous month.

SMM survey showed that China's refined zinc output in November basically met expectations. Treatment charges (TCs) for domestic 50 grade zinc concentrate continued to decline in November. Smelters' profits decreased, and refineries with reduced production were mainly concentrated in Sichuan, Shaanxi and Yunnan. Refineries in Gansu and Yunnan had sufficient supply of raw materials, and the annual production plan was completed at the end of the year, so they were in a full capacity in November.

The mainstream turnover of TCs for 50-grade zinc concentrate in China fell to 4,200 yuan/metal mt in December, and the production profit of smelter enterprises remained low. According to the scheduled production of each smelter in December, the refineries in Hunan and Yunnan were expected to turn into maintenance, while the market generally rumored that the refineries with reduced production had normal production schedule in December.

The domestic refined zinc output in December is expected to decrease 14,200 mt to 548,100 mt.