Refined Zinc Output to Decline 6,000 mt in August amid Loose Power Curtailment

SHANGHAI, Sep 8 (SMM) – SMM data showed that China's refined zinc output stood at 508,900 mt in August, down 1.22% on the month and 0.04% on the year. Output from January to August was 4.04 million mt, a year-on-year increase of 4.47%. Alloy output at domestic refined zinc smelters in SMM’s survey sample registered 75,500 mt in August, up 80 mt on the month.

SMM survey showed that the decrease in domestic refined zinc supply in August was less than expected. The output decline caused by power curtailment in Guangxi and Yunnan was less than expected. Most of smelters in Yunnan resumed normal production. The extent of production restrictions in Guangxi has shrank to 10-20% from 50% in mid-to-late August. Fluctuations of refined zinc output in other regions are in line with expectations. For instance, large smelters in Hunan and Gansu made regular maintenance. 

Smelters in Yunnan have a stable production in September. Some enterprises in Yunnan received a notice that there were no electricity restrictions before September 10. The current power curtailment in Guangxi is still affected, but the extent declined compared with August. Power curtailment in Hunan has basically ended and many secondary zinc smelters surrounding Luxi have resumed production. Other increments came from the resumption of production from the maintenance by smelters in Gansu, Inner Mongolia and surrounding regions. Domestic refined zinc output is expected to increase 11,800 mt to 520,700 mt in September. Smelters in Jiangxi have plans of maintenance in October while other regions have no plans. Guangxi Yusheng planned to commission in October and November.