The Impact of Typhoon "Fireworks" on the Non-ferrous Metal Industry

On July 25, the impact of the flood disaster in Henan has not yet fully subsided. This year’s No. 6 typhoon "fireworks" swept across Zhejiang Shaoxing, Zhoushan, Hangzhou, Ningbo, Shanghai and Suzhou and other areas, causing damage to all industries in the region. With a certain impact, the non-ferrous metal industry is no exception.

Summary of adjustments on July 26:

Copper: It is understood that the current typhoon has limited impact on copper processing enterprises. Except for slightly restricted transportation, the production of copper processing enterprises in Huzhou, Taizhou, and Ningbo is basically normal. In addition, copper companies in the Shanghai area are currently in the process of suspending production and are expected to resume normal production on July 27.

Aluminum: According to research, many aluminum processing enterprises in Jiangsu, Zhejiang and Shanghai (including aluminum profiles, aluminum die-casting, plate, strip and foil, cables, etc.) have not been affected by the typhoon for the time being. Most of the enterprises have normal production and transportation is slightly restricted, but Has little effect. Enterprises reported that the typhoon Ningbo and Shaoxing had heavy rainfall.

Zinc: According to research, the current impact of the typhoon on the zinc industry is mainly concentrated in the die-casting zinc alloy enterprises in Ningbo, Zhejiang. The enterprises have different levels of water inflow and production suspension, which affects production for 2-3 days. Xinghua City requires Companies involved in furnaces should stop on the 23rd to 30th, but Xinghua has fewer alloy companies, and the overall impact is limited. The overall impact of the galvanizing and zinc oxide industries is relatively small, and only the transportation of enterprises in Hangzhou, Zhejiang will be limited.

Shanghai Zinc: Under the typhoon, the willingness to receive goods is poor and the premium weakens. The market shifted to the next month's quotation. Affected by the typhoon in Shanghai, traders and downstream companies are less willing to receive goods. Today's transaction is weaker, and the premium is weaker.

Ningbo Zinc: Affected by typhoon weather, today's transaction is almost zero. Downstream enterprises in Ningbo are all affected to varying degrees. Inquirers are unpleasant in the market, and the enthusiasm of holders for quotations is relatively reduced. The overall trade market is very thin, with almost zero transaction volume.

Steel: According to research, the current impact of steel enterprises on production is relatively small. A small number of short-process steel plants in Jiangsu and Zhejiang have a relatively low operating rate recently, and typhoon weather has reduced and stopped production. In terms of trade, traders in Zhejiang now basically go to work. Some companies in Shanghai and Jiangsu work from home for a day. Due to the extreme weather, business transactions in the market today are generally flat. In terms of warehousing and logistics, all building materials warehouses in Shanghai have stopped loading and unloading, and most warehouses in Hangzhou have also stopped loading and unloading. Other areas have stopped loading and unloading to varying degrees according to the impact of the local typhoon. In terms of terminals, today a large number of construction sites in Shanghai, Zhejiang, and Jiangsu have been suspended to prevent wind and rain damage, and the impact of manufacturing companies is relatively small.