(Updates with closing prices)By Peter HobsonLONDON, April 10 (Reuters) - Zinc touched a two-week low onWednesday on concerns that Chinese smelters will ramp up output,but prices were supported by a shortage of immediately availablematerial on the London Metal Exchange (LME).Benchmark zinc on the LME closed 0.4 percent up at$2,873 a tonne after slipping to $2,842, its lowest since March26.
Deficits have driven LME stocks to record lows and pushedzinc, used to galvanize steel, to a nine-month high of $2,958 onApril 1.
But the supply situation is expected to change rapidly afterChinese treatment charges soared to $240 a tonne from a low of$12.50 at the start of 2018.Smelters are likely to seize the opportunity to make moneyby ramping up production in the second quarter, said DeutscheBank analyst Nick Snowdon.
LME STOCKS/SPREAD: Headline stocks in LME-registeredwarehouses, at 52,550 tonnes, are down from 129,000 tonnes atthe start of the year. The premium for cash zinc over the three-month contract hasshot to $74.50 from close to zero in early February, suggestinga shortage of nearby material. SHFE STOCKS: However, stockpiles in warehouses monitored bythe Shanghai Futures Exchange (ShFE), at 108,772 tonnes, are upfrom about 20,000 tonnes at the start of the year.
MINE SUPPLY: Global mine supply of zinc is expected to rise6.4 percent this year to 13.87 million tonnes, according to theInternational Lead and Zinc Study Group (ILZSG).
REFINED SUPPLY: But higher mine production has been slow tofeed through to the refined market, with the ILZSG showing a384,000 tonne deficit in 2018 and another shortfall in January.GLOBAL GROWTH: The IMF cut its forecast for world economicgrowth this year to 3.3 percent from 3.5 percent and said thechances of further cuts are high. TRADE WAR: U.S. President Donald Trump threatened to imposetariffs on $11 billion worth of European Union products, openinga new front in his trade war. LAS BAMBAS: An indigenous community voted to suspend itstwo-month road blockade of Las Bambas, a large Peruvian coppermine, for two days until the government visits the region onThursday. ALUMINA: Emirates Global Aluminium said its Al Taweelahalumina refinery in Abu Dhabi had commenced operation. It isexpected to produce 2 million tonnes of alumina a year oncefully operational. OTHER METALS: LME copper ended 0.4 percent down at$6,464 a tonne, aluminium fell 0.8 percent to $1,864,lead slipped 1.1 percent to $1,953.50 and tin eased by 0.1 percent to $20,850. Nickel did not tradebut was bid 0.1 percent lower at $13,230.
<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^Top Base and Precious Metals Analysis - GFMS TECH/C ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^> (Reporting by Peter Hobson; additional reporting by Mai Nguyen;editing by David Evans and David Goodman)