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Home / Metal News / [Zn Oxide]Zinc Oxide Producers Reduce Raw Materials Purchase

[Zn Oxide]Zinc Oxide Producers Reduce Raw Materials Purchase

Jun 12, 2015 16:52

Source:SMM

Domestic zinc oxide producers refrained from purchasing raw materials this week due in large part to their bearishness toward zinc market, SMM zinc analyst finds.

SHANGHAI, Jun. 12 (SMM) - Domestic zinc oxide producers refrained from purchasing raw materials this week due in large part to their bearishness toward zinc market, SMM zinc analyst finds.

Cash tightness and weak demand are also believed to have undermined their willingness to build raw materials, the analyst adds.

Prices for indirect zinc oxide remained between 16,000-16,500 yuan per tonne the week ending June 12, SMM data show.

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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.

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[Zn Oxide]Zinc Oxide Producers Reduce Raw Materials Purchase

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