SHANGHAI, Sep 29 (SMM) – China's zinc alloy die-casting plants usually scheduled longer breaks during the upcoming National Day holiday, compared with galvanizing plants and zinc oxide producers, SMM research found.
Surveyed zinc alloy die-casting plants mostly planned to enter 3-4 days of break, with some scheduled at 7-9 days. Production will be suspended during the breaks, SMM learned.
Orders declined from the downstream hardware, locks, and sanitary facilities sectors, on trade dispute with the US, weighed down the overall demand for die-casting zinc alloy from a year ago. This is part of the reason why those die-casting mills planned for longer breaks. High zinc prices in the recent weeks also depressed those plants’ producing enthusiasm.
Most zinc oxide plants chose to maintain regular production during the holiday. Some are for catching up with their production progress, which was dragged down by previous environmental inspection. Downstream stockpiling before the holiday depleted some mills’ inventories of finished products, and this encouraged them to step up production.
High costs for a suspension made most galvanizing plants keep normal operation next week. Expectations on lower prices of raw materials, as eased heating-season cuts this year will grow steel products supplies, also improved sentiment across galvanizing plants, SMM learned.