SHANGHAI, Feb. 17 (SMM) – Approximately 70% of zinc alloy producers in Henan, Jiangsu, Zhejiang and Guangdong will not resume production until after the Lantern Festival on Mar. 5, Shanghai Metals Market survey finds.
Poor orders, tight liquidity and stricter environmental protection inspections are blamed for their delay in production restart, SMM understands.
Zinc alloy producers in Henan have closed production since late January or early February, according to SMM survey. Local producers told SMM that they will not restart production right after the Chinese New Year holiday, which falls on Feb. 18-24, due to environment protection pressures.
The more stringent environmental protection measures after the introduction of new Environmental Protection Law have clamped down zinc alloy producers in Henan, a region in which many small-size, non environment-friendly plants located.
The sluggish property market depresses orders for zinc alloy producers, also cooling their enthusiasm in production.
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