The leading companies of the PRC reduce the release of zinc
Nine leading Chinese zinc companies have suspended or plan to suspend the production lines, the research state-owned Antaike Information Development.
These actions will affect the capacity of 640 thousand tons of refined zinc, the document, which was prepared on the basis of the March report.
Zinc price at LME on Monday rose 0.1% to $2882,5 per ton. During the auction it reached $2900,5 per tonne, which is close to the highest level in the last month, reported Bloomberg.
The reduction in production is “the last piece of the puzzle”, which was necessary in order for the quotes exceeded $3000 per ton, experts say Deutsche Bank.
“We have a serious shortage of primary metal. Zinc probably has the best base position among the industrial metals,” said global commodities analyst at TD Securities Bart Melek.
As reported, the production of zinc in China in January-February increased to a record high of 982 thousand tons, which is 4 .4% more than in the same period last year, according to data of the State statistical administration of China.
The company increased production, utilizing new capacity additions in 2016 amid optimism concerning dynamics of the prices for metals. Further dynamics will depend on the availability of raw materials, experts say.