Affected by the earthquake of magnitude 7.8 in Wenchuan, Sichuan, China, some short positions in London market closed some positions, which promoted the stabilization of its metal prices. The domestic non-ferrous metal grid also showed a general increase the next day.
The impact of Sichuan earthquake on metal supply is still inconclusive, but zinc and aluminum may be greatly affected. As far as zinc is concerned, Sichuan is the main lead-zinc mine producing province in China, and the earthquake will have a great impact on its mining and transportation. At present, the power supply in this province is unstable. In order to ensure the normal demand of residents, the production of aluminum plants may be greatly affected.
According to the Singapore May 13 news, ame, an Australian metal consulting company, quoted the data released by Beijing Antaike Company in February on Tuesday, saying that the zinc output in Sichuan Province of China last year was only 205,000 tons, and there was no lead or other metal output.
Last year, China's zinc output totaled 3.7 million tons, and the global output was120,000 tons.
Ame said, "If the mines in Sichuan Province are unable to produce due to the earthquake this year, it will definitely have a great impact on the market. The surplus supply in the global zinc market this year is estimated to be 200,000-400,000 tons. Therefore, if there is no zinc production in mines in Sichuan Province, the supply of zinc market will eventually reach a balance this year. "
London agent said that the lead and zinc underground mines in Sichuan Province may be affected by the earthquake.
On the night of the earthquake, lme three-month zinc rose by $24 to $2 178 per ton; Lead futures rose $54 to $2,245 a ton.