Zinc Consumption by Alloy Industry to Fall in 2017, SMM Predicts

SHANGHAI, Jun. 12 (SMM) – Zinc demand from die-cast zinc alloy industry will fall 0.6% in 2017, SMM foresees.

The die-cast zinc alloy market will face reshuffle during 2017-2020. Small producers with weak competitiveness may be forced out of the market. In the meantime, demand for secondary zinc grew. These factors will constrain growth in zinc consumption by the alloy industry, SMM said.

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Zinc consumption by the alloy sector was mixed in different regions of China. Guangdong market and neighboring regions reported higher zinc consumption. Zinc demand from die-cast zinc alloy plants in Jiangsu and Zhejiang lack ability to rise.

Operating rate at Chinese die-cast zinc alloy producers averaged 59.68% in the first five months of 2017, up 3.18% from the same period of 2016, according to SMM survey.

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