Chinese zinc powder consumers make purchases cautiously
2023-03-31 11:55:49 [Print]
BEIJING (Asian Metal) 31 Mar 23 - The current zinc powder market demand appears weak, and downstream consumers keep cautious in purchasing. On Thursday, the mainstream prices of Chinese zinc powder 96%min 325mesh hovered at RMB25,950-26,150/t (USD3,776-3,805/t) EXW, up by RMB60/t (USD8.73/t) from Wednesday. Insiders note that the zinc powder market demand has no significant improvement this week, and expect that TCs of Chinese zinc powder would remain stable and prices would go down along with those of zinc ingot in the coming week.
A producer in East China claimed that their downstream customers only purchased zinc powder according to orders this week, and currently have no intention of building a large volume of zinc powder stocks. "On Thursday we quoted RMB25,820/t (USD3,757/t) EXW for zinc powder 96%min 325mesh, and could accept a counteroffer of RMB100/t (USD14.55/t). On Wednesday we could accept a price as low as RMB25,660/t (USD3,734/t) EXW. We sold 32t at RMB25,720/t (USD3,743/t) EXW today and 20t at RMB25,660/t (USD3,734/t) EXW on Wednesday", the source noted, adding that end consumers make purchases cautiously at present, and predicts that TCs of Chinese zinc powder would level off and prices would decline in the following week.
The producer, with an annual production capacity of 50,000t of zinc powder, output about 2,000t in February and expects to produce about 2,800t in March, holding no zinc powder stock at the moment.
Another producer in East China reported that their downstream customers are currently cautious in replenishing their inventory, and the customers who originally purchased 100t once only purchase 32t at one time now. "On Thursday we refused to sell zinc powder 96%min 325mesh at the price lower than RMB26,320/t (USD3,830/t) delivered, and could accept the sale price of RMB26,220/t (USD3,816/t) delivered on Wednesday. We sold 30t at RMB26,320/t (USD3,830/t) delivered today and 20t at RMB26,220/t (USD3,816/t) delivered on Wednesday", the source said, adding that current zinc powder customer demand shows soft, and expects that TCs of Chinese zinc powder 96%min 325mesh would fall in the upcoming week.
With an annual production capacity of 30,000t of zinc powder, the producer saw an output of 16,700t or so in 2022. They expect to produce about 1,500t in March, compared with about 1,000t in February, and hold about 200t of zinc powder stocks for the moment.
A producer in East China claimed that their downstream customers only purchased zinc powder according to orders this week, and currently have no intention of building a large volume of zinc powder stocks. "On Thursday we quoted RMB25,820/t (USD3,757/t) EXW for zinc powder 96%min 325mesh, and could accept a counteroffer of RMB100/t (USD14.55/t). On Wednesday we could accept a price as low as RMB25,660/t (USD3,734/t) EXW. We sold 32t at RMB25,720/t (USD3,743/t) EXW today and 20t at RMB25,660/t (USD3,734/t) EXW on Wednesday", the source noted, adding that end consumers make purchases cautiously at present, and predicts that TCs of Chinese zinc powder would level off and prices would decline in the following week.
The producer, with an annual production capacity of 50,000t of zinc powder, output about 2,000t in February and expects to produce about 2,800t in March, holding no zinc powder stock at the moment.
Another producer in East China reported that their downstream customers are currently cautious in replenishing their inventory, and the customers who originally purchased 100t once only purchase 32t at one time now. "On Thursday we refused to sell zinc powder 96%min 325mesh at the price lower than RMB26,320/t (USD3,830/t) delivered, and could accept the sale price of RMB26,220/t (USD3,816/t) delivered on Wednesday. We sold 30t at RMB26,320/t (USD3,830/t) delivered today and 20t at RMB26,220/t (USD3,816/t) delivered on Wednesday", the source said, adding that current zinc powder customer demand shows soft, and expects that TCs of Chinese zinc powder 96%min 325mesh would fall in the upcoming week.
With an annual production capacity of 30,000t of zinc powder, the producer saw an output of 16,700t or so in 2022. They expect to produce about 1,500t in March, compared with about 1,000t in February, and hold about 200t of zinc powder stocks for the moment.
