China zinc smelters plan to cut output by 10 percent
China’s top zinc smelters plan to cut output by 10 percent after holding a meeting in Shaanxi province to address low zinc prices and treatment charges, two sources briefed on the matter said on Thursday, Reuters reports.
Lead and zinc companies in China were invited to the meeting, which took place on Thursday morning, one of the sources said, adding that it was “not definite” that a production cut would actually take place. The second source also said it was unclear if the firms would really reduce output.
China, the world’s biggest zinc producer, churned out 457,000 tonnes of the metal, used to galvanize steel, in May, according to the National Bureau of Statistics.
Shanghai zinc prices rose by 1.5 percent on Thursday but are still down by 5.3 percent so far this quarter, while London Metal Exchange (LME) zinc hit a 10-month low on Tuesday amid rising inventories.