SHANGHAI, Jan 7 (SMM) - SMM data showed that China's refined zinc output stood at 513,300 mt in December 2021, down 1.2% or 6,200 mt on the month and 7.26% on the year. The cumulative output from January to December stood at 6.09 million mt, a year-on-year decrease of 0.29%. The alloy output at domestic refined zinc smelters in SMM survey sample registered 78,400 mt in December, up 1,200 mt on the month.

There has been unexpected refined zinc output declines in December, according to SMM survey. Expected output growth: The smelters in Inner Mongolia returned to full production after the maintenance or energy consumption control came to an end. The smelters in Jiangxi and Shandong also resumed full production after maintenance. Unexpected output decline: Some smelters in Shaanxi and Guangxi reduced their output which was unanticipated. A few smelters in Gansu and Yunnan cut their output slightly. The maintenance of Yunnan Hualian Zinc & Indium and Hunan Sanli also contributed to the declines. 

It is expected that the domestic refined zinc output will increase by 100 mt from the previous month to 513,400 mt in January 2022, basically the same as in December, according to SMM estimate. According to SMM survey, the expected growth in the output in January is mainly contributed by Yunnan Hualian Zinc & Indium who will complete its maintenance in January, as well as the increasing operating rates of smelters in Gansu. The output will also see some declines as some small-sized smelters in Hunan will be clsed for Chinse New Year (CNY) holiday after mid-January.

On the other hand, the secondary zinc smelters in Hunan and Sichuan will reduce their production during to the CNY holiday in February, and will resume after operating after mid-February. It is expected that refined zinc output will drop by 11,000 mt month-on-month in February.