SMM data showed that China's refined zinc output in May 2024 was 536,200 mt, up 31,600 mt or 6.26% MoM, and down 5.02% YoY. The cumulative output from January to May was 2.636 million mt, down 1.43% YoY, slightly higher than expected. The domestic zinc alloy output in May was 95,000 mt, down 500 mt MoM.
Entering May, the output of domestic smelters increased, mainly due to the recovery of smelters in Henan, Gansu, Xinjiang, and Hunan after maintenance, and the increase in output from smelters in Yunnan, Sichuan, and Guizhou also contributed to a certain output increment. However, the maintenance, production reduction, and shutdown of smelters in Gansu, Shaanxi, Hunan, Guangxi, and Inner Mongolia brought a certain reduction in output. Overall, the output increased significantly.
SMM expects domestic refined zinc output in June 2024 to decrease by 9,300 mt MoM to 526,900 mt, down 4.63% YoY. The cumulative output from January to June is expected to be 3.163 million mt, down 1.98% YoY. The main reason for the decline in output in June is the maintenance and production reduction of some smelters in Hunan due to environmental protection issues, and the reduction in output in Inner Mongolia due to raw material issues. The output increase mainly comes from the recovery of some smelters in Shaanxi, Gansu, Yunnan, and Guizhou after maintenance. Overall, the decline in output is not significant.
