Shanghai Nonferrous Metals News
SMM: China produced 474.1 kt of refined zinc in May, down 1.14% m-o-m and down 1.26% y-o-y. Mainstream PC charges for domestic zinc concentrates dropped to 5,000~5,200/t (in metal) and PC charges for imported zinc concentrates dropped to USD140~160/t (dry). Rapidly falling PC charges have dented buying interests of refined zinc smelters, who have responded by commencing maintenance or implementing production cuts. Several zinc smelters in IM, Yunnan, Guangxi and Gansu are planning to start maintenance in the short-term. However, some smelters in Yunnan, Qinghai and Hunan resumed operations in May.
Looking forward to June, domestic miners are likely to accelerate their resumptions following zinc prices rebounding from a low point, consequently easing supply shortages. Some Shaanxi and Anhui smelters may start maintenance in June and overall domestic refined zinc output is likely to drop by 4.6 kt of 469.5 kt for June.