AM Insight: Chinese refined zinc production up by 9.14% YOY in H1 2013
2013-07-30 09:35:58 [Print]
BEIJING (Asian Metal) 30 Jul 13 - According to the statistics by China Non-ferrous Metals Industry Association, the production of refined zinc was2,570,236t in the first six months of 2013, up by 9.14% year-on-year. The production was 447,275t in June, 2013, up by 1.24% month-on-month.
Although zinc price kept moving down in the first few months of 2013, and the average price was even lower than that in the same period of 2012, Chinese zinc metal production was higher in the first half of 2013. The supply of zinc concentrate was tight in the first few months of 2012, and many producers reported it was hard for them to get the materials as many zinc concentrate suppliers held back from selling. However, the supply turned relatively sufficient in 2013 and the treatment charge of zinc concentrate increased about RMB400-500/metal ton (USD65-81/metal ton) this year.
Furthermore, zinc price decreased a lot in 2012, so the zinc smelters suffered great losses as they purchased the materials with higher price but sold zinc ingot at lower price. Although zinc price also moved down from February to April this year, it did not decreased too much and was relatively stable in the second quarter. In this case, the losses for zinc smelting enterprises narrowed.
Besides, many zinc smelters had been stopped production for 2-3 months in early 2012 in Guangxi Province due to the cadmium pollution incident in Longjiang River. Furthermore, Zhongjin Lingnan also had been stopped production for about 2 months due to the pollution incident.
Therefore, Chinese refined zinc production increased in the first half of 2013.
Although zinc price kept moving down in the first few months of 2013, and the average price was even lower than that in the same period of 2012, Chinese zinc metal production was higher in the first half of 2013. The supply of zinc concentrate was tight in the first few months of 2012, and many producers reported it was hard for them to get the materials as many zinc concentrate suppliers held back from selling. However, the supply turned relatively sufficient in 2013 and the treatment charge of zinc concentrate increased about RMB400-500/metal ton (USD65-81/metal ton) this year.
Furthermore, zinc price decreased a lot in 2012, so the zinc smelters suffered great losses as they purchased the materials with higher price but sold zinc ingot at lower price. Although zinc price also moved down from February to April this year, it did not decreased too much and was relatively stable in the second quarter. In this case, the losses for zinc smelting enterprises narrowed.
Besides, many zinc smelters had been stopped production for 2-3 months in early 2012 in Guangxi Province due to the cadmium pollution incident in Longjiang River. Furthermore, Zhongjin Lingnan also had been stopped production for about 2 months due to the pollution incident.
Therefore, Chinese refined zinc production increased in the first half of 2013.
Zinc Ingot 99.995%min In warehouse Shanghai
Unit:RMB/mt
China refined zinc producers' suspension number statistics by province by month
Unit: pcs
