Zinc smelters cut production to raise prices

Small and medium-sized zinc smelters in China agreed to cut production by 10% in an attempt to lift local prices, Reuters reported. The smelters, which account for 30-40% of China’s zinc output, made the move as low prices have pushed some producers to run at less than full capacity. Zinc smelters have also faced power supply issues that led China’s largest aluminum producers to cut output by up to 10% last week. Reuters quoted a source as saying that zinc smelters, including Yuguang Gold and Lead, and Hongda, are calling on Beijing to establish a strategic zinc reserve to help stabilize prices. China produces about one-third of the world’s refined zinc, used to galvanize steel.