Key facts
- Chinese zinc smelters are facing a worsening feedstock shortage.
- Processing fees for zinc have reached record low levels.
- The shortage and low fees have severely impacted smelter profits.
Chinese zinc smelters are currently under significant pressure due to a worsening shortage of raw materials. This scarcity has driven processing fees to historic lows, effectively eliminating profit margins for the industry. The situation highlights a critical challenge in the supply chain for zinc production within China.