618
C. Hassall
demand in 2018 was ~3.3 Mt higher than it was in 2000, but all of this growth took
place in China, with Chinese demand 3.4 Mt higher in 2018 than in 2000.
Global refined zinc output grew from 8.9 Mt/year in 2000 to around 11.8 Mt in
2019, an increase of almost 3 Mt in annual production between these two years.
However, only 530 kt of this rise occurred outside China, while China’s output
increased by over 2.4 Mt, the additional requirement for zinc in China being met by
rising imports from the rest of the world. Indeed, up to 2007, China was at times
a net exporter of refined zinc to the rest of the world but, since the cancellation of
value-added tax (VAT) rebates on exports of special high grade (SHG) zinc in August
2008, China has been a net refined zinc importer of an average of 500 kt/a since 2009,
peaking at net imports of over 700 kt in 2018.
The major expansion in China’s refined zinc production capacity took place in the
ten years to 2010, with some further moderate increase to 2016, but there has been
a net decrease in capacity since then. Refined zinc output in China grew by ~138%
between 2000 and 2010, was roughly stable through to 2017 but then fell by 7% in
2018. Processing and transportation of zinc smelting residues, largely from leaching,
have been a focus of environmental authorities for some years, with some variation
between provinces a feature. For example, there have been some restrictions imposed
on shipping residues between provinces for treatment and there is now a need for
treatment facilities to be properly licensed. But the widespread enforcement of regulations intensified in 2018 and a number of zinc smelters were significantly impacted,
e.g. Hanzhong (360 kt/a refined zinc capacity) in Shaanxi and Luoping (120 kt/a) in
Yunnan. Not all smelters coming under increased environmental scrutiny had to cut
output, e.g. Laibin (60 kt/a) in Guangxi. And not all production losses in 2018 were
associated solely with tighter environmental regulation and enforcement on smelting.
Some production was lost in Hunan Province with environmental upgrades undertaken at the smelters, but principally because of the prolonged closure of local mines
as major consolidation and re-organisation were undertaken, against the background
of tighter regulation of health, safety, and environmental standards in mining nationally. There was a rundown of output at the Zhuzhou smelter prior to its move to a
new site as the original smelter had, as the city expanded, come within the city limits
and was no longer permitted to operate in such a location. Generally, across China,
some shortage of raw materials for smelting may have played a minor role in early
2018 in lower output, but environmental regulation was the main reason for lower
Chinese output in 2018.
In 2019, there has been a recovery in refined output in China, mainly as smelters
affected in 2018 were able to resume normal operations having satisfied the need
to assure compliant treatment of smelting residues, in effect largely by installing
residue treatment facilities at their own plants. However, smelting residues are just
one facet of tighter environmental requirements. The Chinese industry is now subject
to much more stringent emissions standards which are now closely monitored and
enforced. At times, lengthy shutdowns have been required, while remedial systems
and measures are put in place and official approval obtained. In H1 2019, for instance,
a 100 kt/a smelter in Gansu experienced an SO 2 leak on one of its two lines due to a
fan failure, but the whole operation remained closed for the balance of the year.
C. Hassall
demand in 2018 was ~3.3 Mt higher than it was in 2000, but all of this growth took
place in China, with Chinese demand 3.4 Mt higher in 2018 than in 2000.
Global refined zinc output grew from 8.9 Mt/year in 2000 to around 11.8 Mt in
2019, an increase of almost 3 Mt in annual production between these two years.
However, only 530 kt of this rise occurred outside China, while China’s output
increased by over 2.4 Mt, the additional requirement for zinc in China being met by
rising imports from the rest of the world. Indeed, up to 2007, China was at times
a net exporter of refined zinc to the rest of the world but, since the cancellation of
value-added tax (VAT) rebates on exports of special high grade (SHG) zinc in August
2008, China has been a net refined zinc importer of an average of 500 kt/a since 2009,
peaking at net imports of over 700 kt in 2018.
The major expansion in China’s refined zinc production capacity took place in the
ten years to 2010, with some further moderate increase to 2016, but there has been
a net decrease in capacity since then. Refined zinc output in China grew by ~138%
between 2000 and 2010, was roughly stable through to 2017 but then fell by 7% in
2018. Processing and transportation of zinc smelting residues, largely from leaching,
have been a focus of environmental authorities for some years, with some variation
between provinces a feature. For example, there have been some restrictions imposed
on shipping residues between provinces for treatment and there is now a need for
treatment facilities to be properly licensed. But the widespread enforcement of regulations intensified in 2018 and a number of zinc smelters were significantly impacted,
e.g. Hanzhong (360 kt/a refined zinc capacity) in Shaanxi and Luoping (120 kt/a) in
Yunnan. Not all smelters coming under increased environmental scrutiny had to cut
output, e.g. Laibin (60 kt/a) in Guangxi. And not all production losses in 2018 were
associated solely with tighter environmental regulation and enforcement on smelting.
Some production was lost in Hunan Province with environmental upgrades undertaken at the smelters, but principally because of the prolonged closure of local mines
as major consolidation and re-organisation were undertaken, against the background
of tighter regulation of health, safety, and environmental standards in mining nationally. There was a rundown of output at the Zhuzhou smelter prior to its move to a
new site as the original smelter had, as the city expanded, come within the city limits
and was no longer permitted to operate in such a location. Generally, across China,
some shortage of raw materials for smelting may have played a minor role in early
2018 in lower output, but environmental regulation was the main reason for lower
Chinese output in 2018.
In 2019, there has been a recovery in refined output in China, mainly as smelters
affected in 2018 were able to resume normal operations having satisfied the need
to assure compliant treatment of smelting residues, in effect largely by installing
residue treatment facilities at their own plants. However, smelting residues are just
one facet of tighter environmental requirements. The Chinese industry is now subject
to much more stringent emissions standards which are now closely monitored and
enforced. At times, lengthy shutdowns have been required, while remedial systems
and measures are put in place and official approval obtained. In H1 2019, for instance,
a 100 kt/a smelter in Gansu experienced an SO 2 leak on one of its two lines due to a
fan failure, but the whole operation remained closed for the balance of the year.