BEIJING (Asian Metal) 26 Jan 21 - Due to the local water pollution incident, Chengzhou Zinc Smelter of Gansu Changba Nonferrous Metal Co., Ltd., one of main zinc ingot producers in Gansu, ceased production to make self-examination since January 21 after receiving the local government's notice, with the output in January of about 5,500t, and could not make sure when it would resume production temporarily, a source from the company revealed to Asian Metal.

"Receiving a notice from the government that the concentration of thallium in the Jialing River was abnormal and the government required all enterprises within the basin to suspend production for self-inspection, we ceased production in an emergency since noon on January 21. We are still cooperating with the government in investigating work, and can just determine when to resume production based on the government's arrangement after the result of the investigation," the source said. The company is a subsidiary controlled by Baiyin Nonferrous Group. It uses raw material zinc concentrate, partly supplied by mines owned by its mother company and partly purchased from surrounding areas, to produce zinc ingot which is sold uniformly via its mother company too. According to the source, another local zinc smelter, Gansu Baohui Industrial Group, also ceased production.

With an annual capacity of 100,000t for zinc ingot, the company produced about 7,700t in December and expects to produce about 5,500t in January, holding no stock at the moment. It produced a total of about 72,000t of zinc ingot in 2020.

This Monday in Tianjin, mainstream prices for zinc ingot 99.995%min stayed at RMB20,330-20,430/t (USD3,139-3,154/t) EXW, up by RMB70/t (USD10.81/t) from last Friday.