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Zinc Concentrate:
According to the China Nonferrous Metals Industry Association (CNIA), China's output of zinc concentrate reached 313 kt during May, up 11.1% MoM, but down 1.83% YoY. YTD output of zinc concentrate was 1.3 million mt, up 48.3% YoY, but the growth rate has been falling since February. Supply of domestic zinc concentrate is still sufficient despite the fact that zinc prices were higher in 1H 2010 compare to 2009, and SMM predicts China's output of zinc concentrate will decline in the future if zinc prices remain near present low levels.
Refined Zinc:
According to CNIA, China's zinc output was 452 kt during May, up 4.6% MoM, with YTD output of 2.06 million mt, up 35.1% YoY. However, SMM sources report a number of zinc smelters cut production or conducted unit maintenance since zinc prices have fallen signficantly since May. As a result, China's zinc output during June will be lower.
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