CapitalVue reported that several domestic lead and zinc smelting companies forecast losses for 2011.

Zhuzhou Smelter Group anticipates a loss of CNY 590 million with each share losing more than CNY 1 while Huludao Zinc Industry said it may record a loss of CNY 980 million with loss per share of CNY 0.88.

Yunan Luoping Zinc and Electricity adjusted its earnings estimates and said it may incur a loss of between CNY 282 million and CNY 287 million with loss per share of CNY 1.53.

Zinc and lead prices began to fall since the beginning of 2011 and with the huge increase in refining capacity, smelting fees fell, leading to many of the smelting companies operating at break even points or suffering losses.

According to Zhuzhou Smelter Group, fluctuations in zinc prices and the rise in the prices of power and coking coal resulted in an increase in cost and a decline in gross profit.

(Sourced from CapitalVue)