Frequent supply-side disturbances pay attention to the production of zinc smelters [selection of SMM Zinc Weekly report]

Published: Oct 16, 2021 09:16 (GMT+8)

Source: SMM

Save

[SMM Zinc Weekly report selection: frequent supply-side disturbances pay attention to zinc smelter production] in terms of fundamentals, overseas destocking has continued to reach 188650 tons this week, zinc ingot stocks have dropped by nearly 100000 tons in the past half a year, and LME0-3 has been converted to back structure. On the whole, with the sharp rise in electricity costs, smelters have brought great cost pressure to smelters with high energy consumption. Short-term zinc prices or high and wide fluctuations are expected to run at 3600-4000 US dollars / ton next week.

The following is an excerpt from the weekly report of the zinc industry chain:

In the case of Lun Zinc, the impact of the energy crisis continues, with overseas Nyrstar announcing that it will cut zinc production by 50 per cent at its three European smelters because of rising electricity costs. if production is stopped throughout the fourth quarter, it is expected to affect about 60,000 to 70,000 tons of output. After the news, Lun Zinc rose sharply, once reaching a new high since 2008. Glencore announced that it would carry out off-peak production at smelters in Germany, Spain and Italy in Europe, rekindling market sentiment. Fundamentals, this week overseas continued to go to the warehouse to 188650 tons, zinc ingot stocks fell by nearly 100000 tons in the past half a year, LME0-3 into back structure. On the whole, with the sharp rise in electricity costs, smelters have brought great cost pressure to smelters with high energy consumption. Short-term zinc prices or high and wide fluctuations are expected to run at 3600-4000 US dollars / ton next week.

"View SMM Metal spot Historical Price

"apply for free access to the SMM metal industry chain database

Catalogue of "SMM Zinc Industry chain Weekly report" in this issue

Main points of this weekly report: processing fees, import profit and loss inventory

Hot spot of zinc industry: news of smelter production reduction fermenting Shanghai zinc rising limit Lun zinc refreshing more than 14-year high

Zinc concentrate market: the output of refineries in Guangxi has returned to normal at the end of power cuts.

Refinery dynamics

Imported zinc market

Zinc market forecast next week: frequent supply-side disturbances pay attention to the production of smelters

Review of Zinc City

Zinc plating

Die casting zinc alloy

Zinc oxide

[China Zinc Industry chain High-end report] SMM exclusive monthly survey of zinc industry chain report, covering from zinc concentrate to zinc primary consumer operating rate and supply and demand profile. And announce the exclusive monthly zinc concentrate, refined zinc balance, continue to track the industry entity enterprises, update data. And through the supply and demand situation and data model to make a simple prediction of the future trend of zinc. "View details

Weekly report zinc price price forecast output inventory

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

2 hours ago

Tianjin Zinc: Futures Decline, Downstream Price Fixing Increases [SMM Midday Review]

[Tianjin Zinc: Futures Decline, Downstream Price Fixing Increases] In the Tianjin market, mainstream transactions for #0 zinc ingot were at 25,650-26,060 yuan/mt, Zijin transactions were at 25,830-26,170 yuan/mt, and #1 zinc ingot transactions were around 26,020-26,340 yuan/mt. Zijin was quoted at a premium of 130-150 yuan/mt against the 2611 contract, while Huxin was quoted at 27,430 yuan/mt. #0 zinc ingot was quoted at a premium of 70 yuan/mt to a discount of 30 yuan/mt against the 2611 contract. The Tianjin market was quoted at a discount of 20 yuan/mt against the Shanghai market.

2 hours ago

First Majestic Reports Q3 Production Decline at Los Gatos Mine, Plans Expansion for 2026 Growth

Canada's First Majestic Silver released its third-quarter production report on October 8. Its Los Gatos silver-lead-zinc mine in Mexico produced 13,277,264 pounds (approximately 6,022 tonnes) of zinc during the quarter — down 4% year-on-year and 19% quarter-on-quarter — and 7,839,182 pounds (approximately 3,556 tonnes) of lead, up 2% year-on-year but down 13% quarter-on-quarter. Dragged down by a slight decline in zinc and lead recovery rates, output of both metals fell versus the prior quarter. The company is advancing expansions at the Los Gatos and Santa Elena processing plants, aiming to achieve sustained throughput growth to 4,000 t/d in the second half of 2026.

2 hours ago

Guangdong Zinc: Futures Center Pulls Back, Guangdong Premiums Rise [SMM Midday Review]

[Guangdong: Futures Center Pulls Back, Guangdong Premiums Rise] Guangdong 0# zinc was mainly traded at 25,695-25,970 yuan/mt, with mainstream brands quoted at a discount of 20 yuan/mt to a premium of 10 yuan/mt against the 2611 contract, a discount of 20 yuan/mt against Shanghai spot cargo, and the Shanghai-Guangdong price spread widened...

2 hours ago