Shanghai Nonferrous Metals News
Domestic zinc ore output is expected to grow moderately by approximately 100 kt in 2019, coming mainly from IM and Guangxi, due to intensifying environmental policies. Growth in zinc ore output is expected to slow during 2020, after delays in resumptions and new startup plans. Furthermore, increased environmental pressures, mining safety issues and profits of mining will continue to weigh on output growth during 2020.
Operational rates of domestic zinc smelters were up during 2019, driven by relatively good profits of RMB2,200/t (a five-year high.) Most large domestic zinc smelters are now at full capacity operation and this momentum is likely to continue into 2020. According to SMM, domestic zinc capacity grew by 503.7 kt in 2019, with the majority of growth from Hunan Zhuzhou’s new smelter, and also from Hanzhong Zinc Co. Ltd and Hunan Huayuan. Additionally, there was some smaller growth from Southern Zinc, Zijin Zinc and Zhongjin Lingnan smelters.