Reuters reported that Mitsui Mining and Smelting Company of Japan will resort to imports of bare metal as its 110,000 tonnes per year Hachinohe zinc smelter in northern Japan will likely remain shut for a while after a devastating quake and tsunami damaged the facility.

Company spokeswoman said that the company's two other plants, in west Japan, are already operating near full capacity while the emergency acquisition of ore looks difficult. We plan to rely on imports of bare metal to partially make up for the production loss.

Sources at the firms said that trading houses are scrambling to boost imports of the metal from China and other countries in anticipation of strong demand, boosting premiums for bonded zinc in Shanghai. More than 60% of Japan's production capacity of zinc, used in automotive steel sheet and construction materials has been suspended since the March 11 quake which devastated some northern parts of Japan, leaving more than 27,000 dead or missing.

Dowa Holdings said that it could not resume operations at its 200,000 tonnes per year Akita zinc smelter in northern Japan which accounts for 30% of domestic production of electrolytic zinc used in automotive sheet due to an unstable supply of power.

(Sourced from Reuters)