Shanghai Nonferrous Metals News
China produced 465.4 kt of refined zinc in June, down 1.85% m-o-m and down 5.77% y-o-y. China’s total refined zinc output amounted to 2.87 mln t in H1 2020.
Some smelters in Shaanxi, Hunan and Anhui ran maintenance as planned in June while a number of Yunnan smelters cut daily production due to equipment failure. One large Shaanxi smelter increased production in June and IM and Yunnan smelters have been resuming operations after maintenance.
Looking forward to July, stocks of raw materials at domestic smelters have been rising, with average storage for four-weeks’ operation. The issue of shortening zinc concentrate supply largely eased, but may persist in some regions. Increased concentrate supply in combination with rising PC charges may boost refined zinc output in July. SMM forecast domestic refined zinc output to rise by 26.4 kt on-month to 491.8 kt in July, thanks to contributions from Yunnan, Anhui and IM smelters after maintenance.