Ningbo Lvyi Alloy Material to cut zinc alloy production
2023-04-14 11:10:20 [Print]
BEIJING (Asian Metal) 14 Apr 23 - Ningbo Lvyi Alloy Material Co., ltd., one of major zinc alloy producers in East China, plans to cut its zinc alloy production to about 1,800t in April, a source from the company disclosed.
"Given weak downstream demand, we receive continuously decreasing orders. To prevent stocks from growing, we decide to cut production, expecting to produce about 1,800t of zinc alloy in April, lower than around 3,000t last month, " the source said, adding that they purchase zinc ingot mainly from surrounding traders to produce zinc die-casting alloy zamak-3, zamak-4 and zamak-5 which are mainly sold to East China and South China.
With an annual production capacity of 120,000t of zinc alloy, the company produced around 34,400t in 2022 and holds about 700t of zinc alloy ingot stocks now.
This Thursday in East China, mainstream prices of zinc die-casting alloy zamak-3 stood at RMB22,370-22,570/t (USD3,257-3,286/t) EXW, down by about RMB20/t (USD2.91/t) from Wednesday. The zinc die-casting alloy market sees limited deals at present, leading to growing stocks pressure on producers. Insiders believe that TCs for zinc die-casting alloy would stay relatively stable and prices would move down in the following week.
"Given weak downstream demand, we receive continuously decreasing orders. To prevent stocks from growing, we decide to cut production, expecting to produce about 1,800t of zinc alloy in April, lower than around 3,000t last month, " the source said, adding that they purchase zinc ingot mainly from surrounding traders to produce zinc die-casting alloy zamak-3, zamak-4 and zamak-5 which are mainly sold to East China and South China.
With an annual production capacity of 120,000t of zinc alloy, the company produced around 34,400t in 2022 and holds about 700t of zinc alloy ingot stocks now.
This Thursday in East China, mainstream prices of zinc die-casting alloy zamak-3 stood at RMB22,370-22,570/t (USD3,257-3,286/t) EXW, down by about RMB20/t (USD2.91/t) from Wednesday. The zinc die-casting alloy market sees limited deals at present, leading to growing stocks pressure on producers. Insiders believe that TCs for zinc die-casting alloy would stay relatively stable and prices would move down in the following week.
