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Chinese zinc smelters are scaling back production capacity, a move expected to continue driving zinc prices upward.
According to Robert Friedland, sixteen major Chinese smelters, representing more than 75 percent of the country’s primary zinc capacity, recently agreed on coordinated reductions during their quarterly industry meeting. This combined capacity amounts to 4.7 million tonnes annually, signaling a substantial shift in global zinc supply.
Industry observers are monitoring the effects of this supply reduction on international zinc markets, where reduced availability typically results in higher prices for the metal.
Robert Friedland has previously highlighted that access to minerals like copper and nickel is critical for emerging technologies such as data centers and electric vehicles, according to a recent article. In another report, he noted that G7 plans to reduce reliance on China have drawn attention to projects like the Sunrise Metals Syerston scandium operation amid growing focus on critical metals supply. These developments have intensified scrutiny of supply chain risks in metals markets.