Korea Zinc says no plan to cut zinc output
Reuters - Friday, November 7
SEOUL, Nov 6 - Korea Zinc <010130.KS>, the world's second-biggest zinc refiner, plans to maintain its refining capacity, choosing not to join a growing list of regional peers cutting output to battle falling prices and weak demand.
"We are making profits at this price level and we don't have any plan to reduce production because it would have little impact on supporting prices and major smelters are not cutting output," a Korea Zinc company source told Reuters on Thursday.
The company plans to keep its 2009 zinc production goal at 450,000 tonnes, unchanged from this year's output target, the source said.
The South Korean firm reported last week a 9-percent fall in third-quarter sales and a 28 percent drop in operating profit to 77.7 billion won , as prices of zinc <MZN3> continued to fall and more than halved from end-2007.
Zinc, which is primarily used to galvanise steel, is one of the worst performers in the metal complex this year, pressured by weakening demand and rising inventory level.
Stung by the twin woes of plunging prices and shrinking margins, China's Zhuzhou smelter and Huludao Zinc are slashing output, joining a growing list of Chinese metal firms battling weak demand at home and abroad. [ID:nHKG331120]
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