China's zinc concentrate deficit in 2016 is estimated at 448,000 mt, widening from 9,000 mt in 

2015,  key  Chinese zinc producer Tongling Nonferrous Metals Group's subsidiary Tongguan 

Jinyuan said in its commodity report issued Tuesday. 

Tongguan  Jinyuan  said  that due  to the cold winter back in the first quarter of last year, zinc 

mines  in  North  China  suspended production, thereby limiting domestic mined zinc output in 

Q1. 

It noted that due to environment  monitoring in China, domestic zinc mines' output growth last 

year  was less than expected, as  against high Chinese smelters' operation rates, resulting in 

a continual fall in domestic zinc concentrate stocks. 

The Tongling subsidiary said that increased stringency  of environment protection rules in th

e  first  half  of  2016  caused  suspension  of  operations  at zinc and lead mines in Huayuan 

county, south-central China's  Hunan  province -- a key Chinese zinc production base -- whic

h affected around 150,000-200,000 mt/year of mined zinc capacity last year. 

Also,  some  zinc  mines  that had planned to start commissioning during 2016 have delayed 

operations, thus limiting China's mined zinc output last year, it said. 

China's zinc concentrate  demand  in 2016  was estimated to have been 5.798 million mt, up 

43,000  mt  year  on  year, while  its  zinc concentrate  output last year was 4.4 million mt, up 

150,000  mt  year  on  year, the  Tongguan Jinyuan  figures showed. Tongguan Jinyuan has 

forecast China's national zinc concentrate output  to rise 200,000 mt year on year to 4.6 milli

on mt in 2017.