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SHANGHAI, Aug 5 (SMM) - China's refined zinc output stood at 475,900 mt in July, down 12,600 mt or 2.57% on the month and 39,300 mt or 7.63% on the year. From January to July 2022, the combined refined zinc output is estimated to be 3.447 million mt, a decrease of 2.44% year on year.
SMM survey showed that the output of domestic refined zinc decreased in July and was less than expected. Yet the output still saw some increments. Some smelters in Henan and Qinghai resumed the production in July. The output of some smelters in Yunnan increased due to the supplement of zinc concentrate. The decline in output was mainly caused by the production control of some smelters in Shaanxi and the maintenance of smelters in Gansu. In addition, the output in Inner Mongolia fell amid the maintenance. Some smelters in Hunan were under routine maintenance and some small-sized smelters in Guangxi reduced the production due to the overhaul of mines.
China's refined zinc output is expected to increase by 35,100 mt to 511,000 mt in August, an increase of 2,100 mt or 0.42% on the year. From January to August 2022, the combined refined zinc output is estimated to be 3.958 million mt, a decrease of 2.08% year on year. The output is expected to increases as some smelters in Henan, Shaanxi, Inner Mongolia and Qinghai resume the production after maintenance. In addition, the output in Sichuan will increase as a smelter uses zinc hypoxide to produce. The output in Gansu is expected to increase significantly as a smelter gradually finishes the overhaul. The decrease in output is caused by the routine maintenance of a smelter in Anhui. Overall, the refined zinc output in August is expected to increase sharply mainly because the of the production resumption after maintenance. In addition, with the concentrated arrivals of imported zinc concentrate, the short-term supply problem is alleviated.
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