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A joint production cut by small- and medium-sized zinc and lead firms in China since early July hasn\'t been \'effective\' in supporting prices, since big firms continued expanding, said an industry executive. \'Small mines and smelters have been controlling their production, but this has been offset by the big firms\' output growth,\' said Suo Fang, deputy general manager with zinc and lead miner Yunnan Haolong Industrial Group Co. Zinc prices in China have fallen to around CNY14,000 a metric ton from more than CNY15,000/ton in early July, when 27 relatively small smelters and miners, including Yunnan Haolong, announced a 10%-15% output cut plan to boost prices on high production costs and a weak downstream demand. \'The output in August will probably turn out to be higher than July,\' as expectation of a higher demand in October-November may have prompted greater production, Suo said Saturday on the sidelines of the annual Shanghai Lead & Zinc Summit. China\'s total zinc output in July fell to 331,000 tons from 368,000 tons in June, according to the National Bureau of Statistics. Suo said in a speech at the conference domestic zinc inventories, including those of trading firms and smelters, are at 300,000 tons; besides, the country will add 550,000 tons of zinc output capacity this year, while another 250,000 tons of capacity will come on stream next year. \'I don\'t see any chance for a price trend reversal before 2010,\' Suo said. Fan Jianming, vice president of Western Mining Co. (601168.SH), the country\'s second-largest lead concentrate producer and fourth-largest zinc producer, told reporters the company plans to add 100,000 tons of lead matte output capacity next year and 100,000 tons of zinc smelting capacity in 2010.
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