The Operating Rates at Zinc Alloy Plants Increased, but the Finished Product Inventory has Accumulated

SHANGHAI, Nov 29 (SMM) - The operating rates at alloy plants increased as the production in Jiangsu and Zhejiang recovered after the easing of production restrictions. Besides, the alloy plants that digested finished products in the previous period have plans of producing.

Although some plants maintained stable production, their sales were sluggish. Alloy plants basically did not build large stocks as zinc prices have risen sharply last week, and mainly restocked goods on rigid demand. The increase of raw material inventory slowed. End-users held a wait-and-see outlook amid sharply rising prices, leading to a decrease in sales at alloy plants and increase in finished product inventory. The operating rates are expected to be little changed as the finished product inventory at alloy plants waits to be digested.