Deliveries of Lead and Zinc Concentrate in Sichuan and Gansu Hampered
05/20/2008 16:05:52

May 20th, Metalease: A priority in transportation by Long-hai and Baocheng railway was given to disaster relief materials. In this context, deliveries of lead and zinc concentrate to other places from Gansu and Sichuan were hampered.

One mine operator in Sichuan said local mines were closed and tried their best to transport goods, but transport capacity was expected to tighten in 10-20 days. One lead smelter in Henan said production would not be affected by short-term disruption of railway transportation. However, those smelters with low inventories showed their concerns and stopped moving cargos.

Sichuan Zinc Mines Stop Production
05/19/2008 16:05:52

May 19th, Metalease: A limited number of zinc mine operators in Sichuan said local mines were told by the Central Government to shut down and resumption time remained to be seen. Sichuan output of zinc concentrate in 2007 accounted for 6.5% of China’s total output. A large number of zinc smelters said production stoppages at mines exerted limited impact on purchases of zinc concentrate along with ample supply of domestic and imported zinc concentrate.

Some zinc producers in Gansu and Shaanxi are offline on the Wenchuan Earthquake
05/14/2008
After the earthquake measuring 7.8 Richter scale in Wenchuan, Sichuan, Metalease contacted smelting plants in Shaanxi and Gansu at the first time, but some of them have not been contacted due to telecommunication problems by press time. Gansu Baohui Zinc and Chengzhou Zinc are required to stop production in response to the aftershock. Other producers in Gansu maintain production, but the transportation will be hampered. In Hanzhong, Shaanxi, the disaster situation is in statistics. Zinc outputs in Shaanxi and Gansu were respectively around 316,000 tonnes and 232,000 tonnes in 2007.

Light impact on the copper market by the Wenchuan Earthquake
05/14/2008
Sichuan Kangxi Copper, a crude copper producer, sees light impact by the Wenchuan Earthquake, but the detailed situation cannot be obtained until the telecommunication restores. In 2007, the producer gave an output of 27,300tonnes. According to the data from the Non-ferrous Metal Industry Association, copper output in Sichuan reached 14,900tonnes in 2007, occupying 0.2% of the Chinese total. Besides, the earthquake exerts light impact on copper production in Yunnan. Generally speaking, Chinese copper production shrugs off the impact by the earthquake, but the worries on supply of zinc and aluminum snag copper price rise.

A Limited Number of Zinc Smelters in Gansu and Shannxi Stop Production due to Sichuan Earthquake
05/14/2008 9:13:38
Metalease had connected with zinc smelters in Gansu and Shannxi province immediately after Sichuan earthquake, but connections with some smelters were disrupted due to communication difficulties. Baohui Zinc Products Company and Chenzhou Zinc Industry in southern Gansu province were told by the Government to shut down units as a precaution against aftershocks. Other smelters in Gansu province were running normally and deliveries of raw materials would be affected, sources said. The survey on conditions of disaster in Hanzhong area of Shaanxi was underway. 2007 zinc output in Shannxi and Gansu was 316kt and 232kt respectively.

Sichuan Earthquake's Impact on Lead Prices
05/14/2008
A powerful earthquake struck Wenchuan County in China's Sichuan province on May 12th, and lead smelters in Sichuan, Gansu and Shannxi provinces were affected by the strong earthquake. Although smelting capacity of lead in those three provinces was low, there were many lead mines in those areas. Output of lead ores in 2007 accounted for 10-15% of China’s total numbers, and Sichuan province was the third largest producer of lead ores in China.
Connections with producers in Sichuan were disrupted due to communication difficulties. Units in the neighboring areas of epicenter were damaged and production was halted. Producers in Chengzhou, Gansu province shut down units as a precaution against aftershocks. Lead smelters in Henan said supply of lead ores was affected by the earthquake. Production losses were unknown due to communication difficulties.
Lead prices were on the downtrend. More and more lead smelters cut production due to serious losses, and ceased offers. Market sentiment was stimulated somewhat by production cuts despite high inventories of lead and limited earthquake's impact on market supply. If the news pushed up prices of other base metals, LME lead prices will stop falling and stabilize. In this context, slowdown of domestic lead prices will slow down.

Limited Zinc Smelters in Sichuan Halt Production
05/13/2008
Metalease had connected with zinc smelters in Sichuan province after the strong earthquake, but connections with some smelters were disrupted due to communication difficulties. Zinc facilities of Sichuan Sihuan Electrolytic Zinc Company, located in Mianzhu were closed. Local market players said facilities of Hongda Group in Mianzhu were also affected by the earthquake, with unstable operating rates. The earthquake exerted limited impact on Sichuan Huidong’s smelting facilities, but local enterprises said the majority of mines in Sichuan province were shut down and transportations were greatly affected. 
2007 output of zinc concentrate was 130-140kt in province and zinc output was 206kt.

Aluminum Smelters in Yunnan and Hubei Province Unaffected by Sichuan Earthquake
05/13/2008
On May 12th, a powerful earthquake jolted Sichuan province and the earthquake's impact on Chinese base metal's production was unknown. Connections with zinc and lead mines in Sichuan province were disrupted due to communication difficulties.
Mines in Yunnan and Hubei were unaffected by Sichuan earthquake. It was a piece of good news because many aluminum smelters were located in those two provinces. Mines in Hunan and Guizhou were little affected.

Sichuan Earthquake May Affect Silicon Market
05/13/2008
A strong earthquake hit Wenchuan County, in Sichuan province on May 12th, and the neighboring areas were affected by the earthquake.
Sichuan was one of major silicon production bases. CBI believed that Sichuan earthquake would exert great impact on silicon market for two reasons. First, it was difficult to guarantee power supply in the earthquake-hit areas, and operating rates would be lower than expectations. Second, priority in transportation would be given to disaster relief materials, and deliveries of cargos would be affected greatly. It is great possibility for silicon prices to rise.
Connections with producers in Sichuan were disrupted due to communication difficulties, and CBI was trying best to connect with local producers to get the latest news.

CBI: Zinc Mines in Sichuan Stop Production
05/13/2008
On May 13th: Zinc mines in Huidong, Huili and Batang, Sichuan province were slightly affected by the strong earthquake, according to CBI's survey, and local mines were running normally. However, mines in Yingjing, near earthquake center, Wenchuan had stopped production. Output of zinc ores in CBI’s survey accounted for 50% of Sichuan output in 2007.

CBI: Report on Sichuan Earthquake's impact on Aluminum Smelters
05/13/2008
The majority of refined aluminum producers were little affected by the quake, while there was no unconfirmed news on the newly-increased refined aluminum producers with capacity of 100kt/yr, nearly epicenter Wenchuan due to communication difficulties. CBI believed that production at the smelter would be affected, while impact on the market would be limited in view of small amount of output.
Buildings and infrastructures in earthquake-hit areas were seriously damaged and power was cut in some part of Sichuan and Chongqing. CBI will keep focusing on impact brought by power supply and transportation bottlenecks.