SHANGHAI, Jun. 17 (SMM) – Approximately 33% of zinc downstream enterprises expect zinc prices to fall for the foreseeable future, Shanghai Metals Market survey finds.
The pessimistic outlook among 33% of participants is due largely to poor demand, according to SMM survey, covering 30 zinc downstream enterprises, such as galvanizers, zinc alloy producers, in north, south and central China.
Growing pressures from stringent environment protection inspections, especially in Beijing, Tianjin and Hebei, have put production lines off-stream at some galvanizers, reducing demand for zinc, SMM survey shows.
The sluggish real estate and automobile sectors, two major zinc consumers, also depress their order outlook, in addition to liquidity pressures, SMM adds.
About 22% of participants, mainly galvanizers, are bullish, though, saying demand from high-way and photovoltaic sector will improve during the rest of the year.
The environment endeavor will also favor the long-term development of the sector, with more orders to shift to qualified producers, the optimists told SMM.
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