Zinc Consumption Severely Impacted after Production Restrictions at Galvanizers, SMM Reports

Published: Jul 07, 2017 12:09 (GMT+8)

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Some galvanizers in North China were restricted by strip steel supply shortages, SMM understands. They began to suspend production lines and cut output from July 1.

SHANGHAI, Jul. 7 (SMM) - Some galvanizers in North China were restricted by strip steel supply shortages, SMM understands. They began to suspend production lines and cut output from July 1.

On top of this, about 2,000 tonnes of zinc consumption will be affected, SMM reckons.

Output at some steel plants was hurt by capacity elimination and environmental protection reasons, SMM learnt. Meanwhile, strip steel prices lacked impetus to rise. Some strip steel plants using purchased billet as raw materials entered loss territory after billet prices rose, and were unwilling to produce. The price spread between strip steel and billet narrowed from 250 yuan per tonne to below 200 yuan per tonne.

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Some strip steel plants having blast furnaces increased sales of billet capitalizing higher prices. Consequently, their strip steel output declined, SMM added.

China Galvanizers Scale back Production on Raw Material Shortages, SMM Reports

Two large galvanized pipe plants and many small ones will partially close their production lines for about 7 days from early July, and will restart on July 8, SMM survey finds.

North China-based galvanizers weathered environmental protection checks in the first and second quarter. SMM will continue tracking this issue.

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

Zinc Consumption zinc ore refined zinc zinc supply galvanizing galvanizers galvanized pipe

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.

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