Status Quo of Die-Cast Zinc Alloy Producers in Zhejiang during Environmental Protection Inspections, SMM Analysis

Published: Sep 1, 2017 22:02
Zhejiang has suffered from environmental protection checks after release of the Notice Regarding Closures of Electroplating Plants in Yiwu City for Rectifications by Yiwu Environmental Protection Bure

SHANGHAI, Sept. 1 (SMM) - Zhejiang has suffered from environmental protection checks after release of the Notice Regarding Closures of Electroplating Plants in Yiwu City for Rectifications by Yiwu Environmental Protection Bureau on August 14, 2017. Zinc downstream producers, including die-cast zinc alloy producers, and electroplating plants, were forced to slash or suspend production. What’s the status quo of die-cast zinc alloy producers in Zhejiang Province?

Producer Scale

Zhejiang’s die-cast zinc alloy producers are mainly located in Ningbo, Wenzhou, Yiwu and Yuyao, with total capacity of about 400,000-tpy, which accounts for 21% of national total. These producers are mostly medium and small ones, whose capacities are mainly 10,000-20,000-tpy. About 12-15% of them have environmental licenses.

Status Quo

Die-cast zinc alloy producers in Zhejiang mainly receive orders from zippers, lockset, accessories, automobile and artware industries in the province, and earn profit from processing fees.

Processing fees of #3 zinc alloy are 800-1,000 yuan per tonne. Processing fees of die-cast zinc alloy are decided based on payment period by downstream producers. Die-cast zinc alloy producers are faced with strong cash pressure since they purchase raw material in cash, so they refused to accept orders with long payment period. Payment period by downstream buyers has shortened in Zhejiang. Some better-capitalized producers absorb some orders.

Some SMEs cut or suspended production in 2017 due to environmental protection and capacity elimination policy, reducing overcapacity. In the face of environmental protection checks, most producers shift from coal to gas so as to maintain normal production. After entry of central environmental protection teams in mid-August, most die-cast zinc alloy producers in Zhejiang shut down due to production halts at downstream producers and environmental protection factor. SMM survey finds zinc alloy output in Zhejiang fell 40-45% in August from July. Some producers were reluctant to produce due to strict environmental protection requirements. Environmental protection teams will leave Zhejiang Province on September 11, and SMM will track whether production at local zinc alloy producers will recover. 

For news cooperation, please contact us by email: sallyzhang@smm.cn or service.en@smm.cn. 

Data Source Statement: Except for publicly available information, all other data are processed by SMM based on publicly available information, market communication, and relying on SMM's internal database model. They are for reference only and do not constitute decision-making recommendations.

For any inquiries or for more information, please contact: lemonzhao@smm.cn
For more information on how to access our research reports, please contact:service.en@smm.cn
Related News
Imported Zinc Concentrate Offers Poor Economics, Trading Activity Subdued
Jul 17, 2026 18:04
Imported Zinc Concentrate Offers Poor Economics, Trading Activity Subdued
Read More
Imported Zinc Concentrate Offers Poor Economics, Trading Activity Subdued
Imported Zinc Concentrate Offers Poor Economics, Trading Activity Subdued
【Imported Zinc Concentrate Market】According to SMM, offers for imported zinc concentrate this week were generally quoted at -100 to -130 USD/dmt. However, imported concentrates continued to offer poor economics, leading smelters to maintain a preference for domestic feedstock. As a result, overall trading activity in the imported zinc concentrate market remained subdued this week.
Jul 17, 2026 18:04
High Sulfuric Acid Prices Support Zinc Smelters Amid Tight Domestic Concentrate Market
Jul 17, 2026 18:04
High Sulfuric Acid Prices Support Zinc Smelters Amid Tight Domestic Concentrate Market
Read More
High Sulfuric Acid Prices Support Zinc Smelters Amid Tight Domestic Concentrate Market
High Sulfuric Acid Prices Support Zinc Smelters Amid Tight Domestic Concentrate Market
【Domestic Zinc Concentrate Market】According to SMM, sulfuric acid prices across many regions in China have recently remained elevated at RMB 1,500–1,900/mt, continuing to provide strong profit support for domestic zinc smelters. The domestic zinc concentrate market remained tight in July, while the domestic-to-import price ratio stayed unfavorable, prompting smelters to continue prioritizing purchases of domestic zinc concentrate. Mainstream domestic treatment charges (TCs) have now declined to -500 to -1,000 yuan/metal tonne.
Jul 17, 2026 18:04
Data: SHFE, DCE market movement (Jul 17)
Jul 17, 2026 15:53
Data: SHFE, DCE market movement (Jul 17)
Read More
Data: SHFE, DCE market movement (Jul 17)
Data: SHFE, DCE market movement (Jul 17)
The following table shows the ferrous and nonferrous metals movement on the SHFE and DCE on 17 Jul , 2026
Jul 17, 2026 15:53