China Considers Capping the Capacity of Lead, Copper and Zinc Smelters
Recent reports from the China Nonferrous Metals Industry Association show that the country’s processing capacity has grown significantly in the recent past, surpassing its mine capacity greatly. Data from the Shanghai Metal Market shows that between Q1-Q3, China’s refined output rose by 12%, driven by expansion in smelter capacity. This has led to excessive competition between firms in the sector and comes as smelters in the West slash their operating rates, with some even closing their plants. While an increase in processing capacity is good, refining and spot treatment rates have been decreasing over the last few months. For smelters…
