Zinc Market Report December 2014

Contents
Introduction 1
1 Financial news 1
1.1 Chinese domestic financial overview 1
1.1.Asian Metal Copyright5 Operating rate of China’s zinc oxide plants down to 37.Asian Metal Copyright1 CPI up by 1.Asian Metal Copyright2% YOY in November 35 7.Asian Metal Copyright4% and PPI down by 2.7% YOY in November 1
1.1.Asian Metal Copyright2 International financial overview 3 1.Asian Metal Copyright2 PMI down by 0.2% in December 2
1.2 International financial overview 3
1.2.1 Crude oil futures prices continue to slide 3
1.2.2 The US dollar remained strong in December 4
2 International market overview 5
3 Chinese domestic market overview 7
3.1 Chinese zinc concentrate market stable in December with sufficient supply 7
3.2 Zinc ingot trading slow, spot premiums stable 9
3.3 Producers decrease die-casting zinc alloy output, processing charge declines 10
3.4 Zinc oxide market 11
3.4.1 Market for zinc oxide produced from zinc ingots flat 11
3.4.2 Market for zinc oxide produced from zinc scrap sluggish 12
3.4.3 Zinc oxide 90-99% market dull 13
3.5 Zinc powder market 13
3.5.1 Fine zinc powder demand declines slightly 13
3.5.2 Consumers purchase metal zinc powder steadily 14
3.6 Zinc sulfate market improves slightly 14
4 Production data 15
4.1 China’s zinc concentrate production down by 4.38% YOY in November 2014 15
4.2 China’s refined zinc production in November reaches record high 16
4.3 Operating rate of China’s zinc smelters down to 80.8% in December 17
4.3 China’s zinc smelters’ stocks down by 7.5% MOM in late December 18
4.4 Operating rate of China’s die-casting zinc alloy plants up to 48.58% in December 19
4.5 Operating rate of China’s zinc oxide plants down to 37.9% in December 20
4.6 Stocks at China’s zinc oxide plants up by 5% MOM in late December 21
5 Import & export data analysis 22
5.1 China’s zinc import and export data by country in November 22
5.2 China’s zinc ore/concentrate imports up by 37.88% YOY in November 2014 24
5.3 China’s refined zinc imports down by 24.43% MOM in November 26
5.4 China’s zinc oxide imports up by 13.9% MOM in November 27
5. China’s zinc powder imports down by 10.56% MOM in November 29
5.6 Top ten Chinese zinc ore/concentrate importers in November 31
5.7 Top ten Chinese refined zinc importers in November 32
5.8 Top ten Chinese zinc oxide importers in November 32
5.9 Top ten Chinese zinc powder importers in November 33
6 Company news 33
6.1 Baiyinnuoer Lead-Zinc Mine halts production temporarily 33
6.2 Yindu Mining’s lead-zinc-silver mine halts production 34
6.3 Maguan Yuntong Zinc reduces zinc ingot production in December 34
6.4 Hulunbeier Chihong halts refined zinc production in December 34
6.5 Yongchang zinc industry to reduce zinc oxide output to 500tpm 35
7 Related industry developments 35
7.1 China’s crude steel output down by 0.2% YOY in November 35
7.2 China’s automobile sales volume up by 2.3 % YOY in November 35
8 Outlook for January 36

Picture 1 China’s CPI and PPI trend in 2014 2
Picture 2 China’s PMI index in 2014 3
Picture 3 US crude oil futures price trend on major transaction market in November 4
Picture 4 USD index chart 2014 5
Picture 5 Three-month seller zinc on the LME in December 2014 6
Picture 6 Zinc stocks on the LME in December 2014 6
Picture 7 Prices for zinc concentrate 50%min in South China in December 2014 8
Picture 8 Prices for zinc concentrate 55%min in North China in December 2014 9
Picture 9 Prices for SHG zinc ingot in December 2014 10
Picture 10 Price graph for Zamak-3 zinc alloy in Demcember 2014 11
Picture 11 Prices for rubber grade zinc oxide 99.7%min from zinc ingot in December 2014 12
Picture 12 Prices for 325 mesh zinc powder 98%min in December 2014 14
Picture 13 China’s zinc concentrate production 2011-2014 16
Picture 14 China’s refined zinc production 2011-2014 17
Picture 15 China’s zinc smelters’ operating rate 2013-2014 18
Picture 16 China’s zinc smelters’ stocks November 2013-December 2014 19
Picture 17 China’s major die-casting zinc alloy producers’ operating rate 2012-2014 20
Picture 18 China’s zinc oxide plants’ operating rate from 2012 to 2014 21
Picture 19 China’s zinc oxide plants’ stocks from January to December 2014 22
Picture 20 China’s zinc ore/concentrate imports 2013-2014 25
Picture 21 China’s refined zinc imports 2014 26
Picture 22 China’s refined zinc import origins 2014 27
Picture 23 China zinc oxide imports from January to November 28
Picture 24 The origins of China’s zinc oxide imports in November 2014 28
Picture 25 China’s zinc oxide import price 29
Picture 26 China’s zinc powder and flake powder imports from January to November 2014 30
Picture 27 Origins of China’s zinc powder and zinc flake powder imports from January to November 2014 31


Table 1 Prices for zinc oxide 99.7%min produced from zinc scrap 13
Table 2 Output changes of some zinc smelters in December 17
Table 3 Refined zinc, zinc alloy, zinc concentrate/ore imports and exports in November 2014 22
Table 4 China’s top 10 zinc ore/concentrate import companies in November 2014 31
Table 5 China’s top 10 refined zinc import companies in November 2014 32
Table 6 China’s top 10 zinc oxide import companies in November 2014 32
Table 7 China’s top 10 zinc powder import companies in November 2014 33