Antaike's output report on refined zinc in March 2021

Beijing, Apr. 16 (Antaike)--Antaike investigated 51 zinc refineries, adding Xinjiang Zijin and Qinghai Zhongju, concerning capacity of 6.30Mtpy, and showed that they produced 1.335Mt of zinc and zinc alloy in Jan-Mar 2021, up 7.2% year on year, of which March output was 426kt, rising 7.0% year on year but down 541t month on month, and average daily output decreased by 9.8% month on month. Output was 426kt in February after correction, rising 9.0% year on year. Some enterprises slashed output in Inner Mongolia due to energy limitation, which offset output increment in Hunan, Sichuan and Xinjiang.

Inventory at major zinc refineries was 36kt in early April, down 7kt compared with early March, and ingot inventory was almost consumed but alloy inventory grew dramatically.

Domestic major zinc refineries all slashed TC in April, with average TC of 3,800 yuan/t, down 50 yuan/t compared with March, but regional differences were still huge. TC at northeast region was relatively high but in Yunnan, Hunan, Sichuan and Shaanxi, TC was much lower than the average level, of which Yunnan province experienced the largest fall of 100 yuan/t month on month to 3,550 yuan/t. Some zinc refineries tried to lift TC in early March, but it fell eventually.

In April, output from Hunan, Gansu, Sichuan and Qinghai will increase month on month, and output in Inner Mongolia will still be affected by the energy limitation policy. Operation rates of some secondary companies will be influenced by the new round of environmental protection inspection, besides, some refineries in Yunnan, Xinjiang and Guangxi will take maintenance as scheduled.

It is estimated output will rise by 6.7kt month on month to over 430kt in April and 10kt in May. Output increment will be contracted significantly in Q2 compared with expectation, and TC is likely to stabilize.

                               Antaike refined zinc output

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