China’s Wenzhou Zinc Die-Casting Alloy Producers to Stop Production, Dragging Down Zinc Prices

SHANGHAI, Jan. 6 (SMM) – Most of zinc die-casting alloy producers in Wenzhou, Zhejiang Province plan for earlier-than-usual production halts due to poor orders and cash crunch, Shanghai Metals Market learns. 

The production suspension at some producers is expected to continue into the Lantern Festival on March 5, lasting for two months, according to SMM survey, revealing few producers stopped production in late December.  

“The sluggish property market significantly affected our orders,” the surveyed producers told SMM.   

Waning demand, combined with inflows of imported zinc and supply increases by smelters at high prices, is expected to curb zinc price gains, SMM foresees.