U.S. Zinc to Increase Zinc Oxide Capacity in China

With the recent spike in raw materials prices, it is very difficult for indirect-process zinc oxide companies to survive if downstream sales prices do not increase. Since 2010 to date, the concentration of the zinc oxide industry has gradually increased, with the number of enterprises falling from more than 700 to around 150 as of today. However, although the concentration of production capacity has increased, the issue of overcapacity is very serious, mainly caused by the intensive competitions among the companies.

A new wave of price increase seems to have been formed with 13 tyres companies releasing such notices since Dec.1st.

In October, auto production volume reaches 2.6036 million, dropping 2.49% on monthly basis.

Wang yanlong, General manager of Aolong Zinc, says the environmental protection has been normalizing and will become stricter.

Wang Ruiqiang, from Shanghai Jinghua Chemicals, says the main changed content includes:

SMM released survey result of operating rates at domestic zinc industries in May.

Operating rates at all steel tire plants in Shandong fell over 10% in May. Some small tire plants in the region which did not meet requirements remained closed in June.

Putian Entry-Exit Inspection & Quarantine Bureau revealed the Port of Putian imported zinc oxide concentrates for the first time recently, fjsen.com reported.

An increasing number of domestic tire producers cut their production due to recent high temperatures, SMM reports.

Seyang Zinc produced 650 tonnes of zinc oxide in August, down 18.7% from July’s 800 tonnes, sina.com reports.