Over in China................Large Chinese zinc smelters refuse to cut production
Although small and medium zinc smelters agreed to cut production in July and August, larger Chinese smelters will not reduce their output.
Author: Dorothy Kosich
Posted: Thursday , 17 Jul 2008
RENO, NV -
The large zinc smelters in China, the world's number one zinc producer, refused to join the 10% production cuts agreed to by smaller producers, but have consented to a moratorium on new projects for the rest of this year.
Nevertheless, Chinese zinc production could drop as low as 3.7 million tonnes this year, a decline from the originally forecast 4 million tonnes.
The larger smelters, which comprise half of China's 4-million tonne total zinc production capacity, have agreed not to start building new plants or expand projects in the remaining half of this year. The medium and small smelters hope to cut production to help lift domestic zinc prices, which have been under pressure due to oversupply.
India's Economic Times quoted an executive at the Zhuzhou Smelter, who said, "It would be impossible for the big smelters to agree to such a cut. Most big firms are listed companies and cornerstones of their local economies, so they cannot decide without alerting investors and governments."