Lots of mixed signals these days.
Chinese zinc exports seen falling
TOKYO, Nov. 9 (Reuters) -- Chinese exports of zinc and alloyed zinc could slump by more than 150,000 tonnes this year after surging by 146 percent to 556,007
tonnes in 1997, a Japanese government metal organization said Monday. The Metal Mining Agency of Japan said China was diverting zinc shipments to Europe and
the United States from other Asian countries, with sales to the United States soaring 384 percent to 25,438 tonnes in the two months to August 31. Amid slack
foreign demand, some major Chinese refineries were reducing output, but others continued to raise production. Many could still cover production costs despite falls
in zinc prices on the London Metal Exchange, it said. "Break-even points for exports ... are estimated to stand at around $1,000 per tonne, which has not yet been
breached domestically as well as abroad," the agency said. "Thus, despite continued increases in inventories, production is not falling at all.... Unless they cultivate
new buyers, we are likely to see further rises in inventories and falls in domestic prices," it said. The agency estimated that by August, Chinese zinc inventories
doubled from the start of the year, with domestic consumption estimated at 556,000 tonnes in the eight months, output at 885,000 tonnes and exports at 228,000
tonne
Pasminco says the Chinese can only produce 850,000TPA steady state yet this implies annual production potential of 1,300,000 T. Who to believe? When are we going to get some decent info! |
