More Chinese Tire Producers Slash Output, SMM Reports

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.

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.

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.

China won the anti-dumping case launched by the US on tire used in trucks and passenger vehicles for the first time, stcn.com reported.

Colombian mining major Carbones del Correjon Ltd. has announced opening of its new large tire recycling plant in Albania municipality in the northeastern province of La Guajira.