SHANGHAI, Jun. 29 (SMM) – The 11th G20 Summit is going to be held in Hangzhou, China from Sept. 4-5, and how will the summit affect copper, aluminum, lead and zinc markets in and around Hangzhou?
SMM surveys producers in the neighboring areas and finds the following insights.
“Impact on copper market will be small from the summit in Hangzhou due to limited numbers of copper producers there,” SMM copper analyst says.
There are two copper smelters in Fuyang, about 50 km from Hangzhou, and the two smelters will adjust their production plan, and conduct unit maintenance during the summit period, SMM survey finds.
Moreover, output of copper semis in Zhejiang Province is around 15 per cent of nation’s total, mainly in Ningbo, Taizhou, Jinhua, Shaoxing, Zhuji and Wenzhou, and the number of copper processing producers in and around Hangzhou is limited.
“The summit in Hangzhou will also give a small influence on aluminum market,” SMM aluminum analyst predicts.
There are only a small number of aluminum wire&cable producers in the neighboring area, and total capacity of aluminum plate, sheet and foil producers near the region is around 1 million tonnes, a low proportion in nation’s total of 13 million tonnes.
Those producers will suspend production during the summit period, but they will compensate for production losses by advancing or postponing work plan, according to SMM.
“Production at some zinc die-casting and galvanizing producers in Wenzhou, Ningbo and Xiaoshan has already been negatively affected, while production in other regions is stable,” SMM zinc analyst notes.
Environmental protection inspections are now underway in Yangtze River Delta Region and neighboring regions, including Shanghai, Jiangsu, Zhejiang, Anhui and Jiangxi. Zhejiang is on the top list of inspections with the nearing of G20 Summit. A cluster of zinc die-casting producers are in Ningbo, Yiwu, Yuyao, and Wenzhou, and galvanizing plants are mainly located in Xiaoshan.
It is a low demand period for some industries since June, such as zipper, reducing operation rates at zinc die-casting plants. This, coupled with ongoing environmental protection inspections from June to August, will combine to depress zinc demand, SMM predicts.
Production at local battery producers will be affected during the summit period, according to SMM survey, and one battery told SMM that the company will halt production for one or two months for the summit, and to secure normal supplies, the producer has already begun building up stocks.
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