Singapore-Two of China's major zinc producers, Huludao and Zhuzhou, are managing to maintain their output close to 2004 levels despite concerns about tight concentrate supplies and power shortages. Huludao Zinc Industry has projected a zinc output of 230,000-240,OOOmt for 2005, which is in line with output in 2004, but below its capacity of 330,000mt/year. "We are still affected by similar factors as last year so cannot ramp up to full output yet," a company official said. "Feed supply is tight and feed costs are on the rise. Power supply is sufficient in our region, and power costs are also high." The company has not set a target output for 2005 as "everything depends on feed supply and production costs now...we will adjust operations as the market situation changes," the official said. The company's No 3 plant, which was upgraded in 2004 to a 130,000mt/year capacity, has been running at just 50,000mt/year so far in 2005. "We will keep operating at this level for now until we see improvements in the feed supply situation," he added.
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