High profits, resumptions expand zinc output by 4.14% in May

SHANGHAI, Jun 10 (SMM) – Production of refined zinc in China extended its increase in May as high profit margins and recovery after capacity relocation and environmental probes bolstered output, SMM data showed on Monday June 10. 

China produced 480,200 mt of refined zinc in May, up 4.14% from April and 13.49% from May 2018. Surveyed capacity remained unchanged at 6.085 million mt/year.

Chihong Zinc & Germanium and Baiyin Nonferrous, and Zhuzhou Smelter and Hanzhong Zinc accounted for the increase as they resumed after maintenance and ramped up production after recovery. A higher grade in zinc concentrate used as raw materials and resumption at some small smelters also boosted output. West Mining and Mengzi Mining & Metallurgy underwent maintenance in May. 

Anhui Tongguan and Chengzhou Mining will conduct maintenance in June but overall zinc production will continue to expand this month as Zhuzhou Smelter steps up production on its second production line and West Mining and Huludao Zinc recover from maintenance. Higher profits will also spur output at some smelters. 

Zinc output is expected to grow 4.4%, or 21,100 mt month on month to stand at 501,300 mt in June, up 16.56% from June 2018. This will raise the year-over-year growth in output in January-June to 2.1%, from a decline of 0.41% in January-May.