China Zinc Alloy Plants Witness Slack Orders despite Peak Season, SMM Reports

SHANGHAI, Sep. 8 (SMM) - Die-cast zinc alloy producers in Fujian were disappointed recently as their orders failed to improve despite the peak demand month of September, SMM understands.

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SMM surveyed die-cast zinc alloy producers in Fujian’s Xiamen, Shishi and Longhu to find both home sales and export orders of shoes and garment were sluggish.

Vietnam, Indonesia and India gained increasing share in international shoes and garment markets, and this pared China’s international competitiveness in such fields, SMM said. 

Demand for die-cast hardware in Quanzhou,Fujian Province is expected to slide 1/3 this year.

Meanwhile, some construction hardware and die-casters prefer to use aluminum alloy instead of zinc alloy due to rising zinc prices. The price spread between zinc and aluminum expanded from 2,000 yuan per tonne before the 2016 Chinese New Year holiday to 6,000 yuan per tonne.

They are also unwilling to build stocks at zinc prices above 18,000 yuan per tonne out of cash flow consideration, SMM added.

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