[Zinc Oxide] Zinc Oxide Producers Unwilling to Receive Orders

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.

Dramatic fluctuation of international zinc price has a strong impact on development of zinc oxide industry in China.

Zinc prices fell below 22,000 yuan per tonne March 9 due to concerns over failure in output cut by zinc smelters. Fortunately, a large number of Chinese zinc smelters began maintenance.

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

Prices for indirect zinc oxide rose 400 yuan to 14,400-14,800 yuan per tonne this past week, SMM data show.

Prices of indirect zinc oxide fell 200 yuan to 12,900-13,500 yuan per tonne this week, according to SMM data.

Prices of indirect zinc oxide rose to 13,250-13,500 yuan per tonne this past week.

Prices of indirect zinc oxide in China fell with zinc prices to 13,000-13,400 yuan per tonne this past week, SMM reports.