Zinc exports from
China, the biggest producer and consumer, to Japan may gain after the
earthquake on March 11 disrupted smelter production, said an executive at
Shanghai Eagle-Metals Co.
"Our orders
for zinc jumped after the quake in Japan," said Li Zhihua, president
of Eagle-Metals, one of the largest privately-owned nonferrous metals
trading companies in China. "Some smelters suspended operations after
the earthquake and transport may be a problem as well, so some buyers are
sourcing from China."
Zinc smelters in
Japan, including Mitsui Mining & Smelting Co, Dowa Holdings Co, and
Toho Zinc Co have suspended operations after the magnitude-9 temblor and
tsunami. The affected capacity totaled 451,200 tons, according to
Bloomberg's calculations. The metal, used to galvanize steel, is widely
found in home appliances and vehicles.
"There is
ample smelting capacity available in China to take more concentrates and
increase metal output," while the timing for a restart in Japan is
not yet known, Macquarie Group Ltd said in a research report on Monday.
Zinc for delivery in three months on the
London Metal Exchange has fallen 2 percent this year and traded at $2,402
a ton at 10:16 am Shanghai time. It has gained 5.2 percent since March 11.
"Japanese
companies usually keep zero inventories, maybe enough for just two or
three days, so when such catastrophic disasters happen, they have to turn
to other sources to secure supply," Li said.
Zinc output in
China fell 12.7 percent to 799,000 tons in the first two months of this
year, according to the National Bureau of Statistics.
The country's
exports of unwrought zinc declined 79 percent to 3,318 tons in
January-February, while imports gained 14 percent to 69,114 tons,
according to the General Administration of Customs.
The death toll from
Japan's worst postwar disaster climbed to 9,811, with 17,541 people
missing, according to the National Police Agency in Tokyo. More than
250,000 people are living in 1,913 evacuation centers after the quake and
tsunami devastated the country's northern coastline.
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