Shanghai Nonferrous Metals News
With improved transport and easing pressure on domestic zinc smelters, output is expected to increase in March 2020.
On the demand side, most downstream zinc smelters had resumed operations by late February represented by an operational rate of 70% for die casting zinc alloy and zinc oxide producers and 80% for large galvanized zinc producers. Notably, some large galvanized zinc producers are at full operation and are positive about potential demand growth in the infrastructure sector. However, only 20%~30% of mid-small galvanized zinc producers are operational at present, due to continued weak orders and a lack of workers. The consumption side of zinc is projected to be weak in the short term due to an overall lackluster market.
Zinc inventory at smelters has reached a high level of 105 kt, even after being moved to social warehousing and downstream users. As of 9th March, zinc inventory at the major seven warehouses totaled 337.9 kt, a high level.