Zinc producers may force to be cut output as a result of the continued shortage of concentrates.The crsis over the lack of raw materials shows no sign for easing either as plans for new mine capacity may be delayed by a shortage of qualified staff and equipment. Companies are keen to bring new mine capacity on stream as soon as possible to take advantage of record zinc price.

 

A shortage of qualified labour and equipment may prevent new zinc mining and smelting projects from coming on stream. We think the deficit will translate the into metal cutbacks. We think the ability to start up in the near term is compromised by these factors. Referring to the moves by copper fabricators last year, who shut the production down temporarily due to a lack of copper. you may see the same thing happening in zinc industry.