SHANGHAI, Sep 8 (SMM) — China's refined zinc output stood at 509,100 mt in August, rising 16,300 or up 3.3% on month and up 1.98% on year. Output totalled 3.87 million mt in the first eight months of this year, up 3.68% from the same period last year.
China's refined zinc output in August was higher than expectations as the treatment charges (TCs) for domestic zinc concentrate (Zn 50%) rose to 5,450 yuan/mt (Zn content) from the previous month. The continued rise in zinc prices improved profits, prompting smelters to increase production. In addition, some smelters in Gansu, Hunan, Inner Mongolia and other regions resumed production after the maintenance. The reduction of refined zinc was mainly concentrated in smelters in Henan, Guangdong and Inner Mongolia which were undergoing maintenance.
Although TCs for zinc concentrate in some areas fell on a month-on-month basis, the composite TCs were still at a high level in September. High profits prompted smelters, except some in Gansu which are under maintenance, to ramp up production.
Zinc smelters produced 78,000 mt of zinc alloy in August, up 3.94% from the previous month, according to SMM survey. SMM expects refined zinc output to increase 36,900 mt to 545,900 mt in September.
