SHANGHAI, Aug 2 (SMM) – The operating rate at zinc alloy producers across China dipped in July as a cyclically low season suppressed demand, SMM research found.

The rate came in at 48.44% in June, down 0.2 percentage point month on month and down 4.19 percentage points year on year.

While environmental inspectors left Shandong and Jiangsu provinces in early July, zinc alloy producers that passed environmental checks did not return to full operation given the low season.

Meanwhile, producers also saw orders shrink as temperature got higher. This also hampered the operation at those plants.

SMM expects the operating rate to edge up 0.69 percentage point to 49.12% in August as orders that go to zinc alloy producers may grow. Some zinc alloy producers told SMM that the low-season effect is likely to ease in late August. Operating rates would be 6.26 percentage points higher from the same period last year.