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Chelyabinsk plant will produce 200,000 tonnes of zinc

29 April 2015

According to experts of Chelyabinsk Zinc Plant, demand for its products on the domestic market has remained stable. During the first months of this year Chelyabinsk plant did not feel the fall. When a stable value of the metal in the deficit on the global market CZP will increase production capacity to 200 000 tons. This will require 2 years if the economy does not suffer another blow. In Russia, for the production of zinc, only two focused businesses. Accordingly, the Russian Federation is not a world leader in the production of zinc. At the same time, the industry is of considerable importance for the Russian market, given the high demand for engineering and construction of galvanized materials.

The main consumers of CZP products are «Severstal» and MMK. They use zinc purchased for the production of rolled steel, having a coating. The main purpose of this coating — corrosion protection. As to imports of galvanized metal structures, the exchange rate had a negative impact on its volumes. Apparently, for this reason, the demand for domestic goods zinc. Growth of consumption of steel with zinc coating in Russia is about 1 million. Ton / year. For this reason, manufacturers are willing to invest in expanding capacity considerable sums for the purpose of displacing imports. This year, CZP plans to produce 170,000 tonnes, slightly higher than last year's results. In Ikvartale was produced 44,884 tons of zinc, 44,503 tons were produced in the same period of 2014. After the modernization of production over the past two years the company will be able to increase output to 200 000 tonnes / year. In 2015 the volume of investments will amount to about 2.2 billion. RUB. This amount exceeds last year's investments in almost 1/3. Chelyabinsk plant expansion project will require costs to the level of 1.8 billion. RUB.

In recent years, the global zinc consumption when used as a protective coating greatly exceeds production. According to analysts in 2015, the industry expects a deficit of 366 000 tonnes. In 2014, the figure reached 296,000 tons. It is believed representatives of CZP the situation will not change for at least 2−3 years. Future predictions are premature. As for this period, you can count on if you do not increase the cost of zinc, at least on its stability. Now the price per tonne between 2000 to 2200 USD.

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