#14855, "RE: Prix du Zinc et du plomb" En reponse à Reponse # 0
The information below is from Scotiabank (The Daily Mining Scoop) and follows some of the commentary from Teck over the past year regarding China’s crackdown on small producers due to environmental concern. Teck have maintained for some time that Chinese supply had peaked. Scotia are reporting zinc inventories are now down to 11.1 days, approaching what they claim is a pinch point at around 10 days. Higher prices may not be far off!
On the Nevada Zinc front we are diamond drilling in Nevada and well underway with programs in the Yukon on several very exiting fronts!
- Zinc Back in the Spotlight: Waiting on a Chinese Supply Response? Don’t Hold Your Breath…: Two stories out of China over the past week suggesting that any kind of supply response from China to address the ongoing shortage in Zn concentrate production may NOT be coming any time soon. How come? First and foremost, it has to do with China enforcing its ongoing crackdown on pollution (notably in the Zn producing province of Sichuan). Recall that much of China’s Zn production used to come from smaller, independent operations that had previously been operating in loose regulatory environment. Not so anymore. Scotia Mining Sales noting that lead is likely the culprit when it comes to what Chinese environmental authorities are trying to contain. Second, on the night of August 8th, a large earthquake hit the north of Sichuan province where employees had evacuate mines and production facilities on safety concerns (impact to production as of yet unclear)….
1) China research firm Antaike said the start of environmental inspections in Sichuan province had prompted 60 percent of local lead-zinc mines to shut down for month-long maintenance. That could mean lower supplies of zinc and lead in August and September. https://af.reuters.com/article/africaTech/idAFL4N1KW3AR
2) Chinese lead and zinc producers near Jiuzhaigou in the north of Sichuan province, China, where a 7.0-magnitude earthquake occurred on the night of Aug. 8, had to evacuate employees due to safety concerns, Shanghai Nonferrous Metals reported, citing unnamed sources. The impact on production is unclear. Tragically, the earthquake left 9 confirmed dead and 164 injured as of Aug. 9, according to a separate Xinhua News Agency report. https://news.smm.cn/news/100750282
China June Zn concentrate production down 4.0% Y-o-Y….sounds like this could be going lower….