Japanese hot-dip galvanizers are concerned on supply shortage of distilled zinc after a domestic large producer was downed by Japan Earthquake. They are cautious to use imported zinc as alternate material since distilled zinc is Japanese original product specification. The galvanizers are waiting for the smelters’ operation recovery.
In Japan, distilled zinc is produced at Sumitomo Metal Mining’s Harima smelter in Hyogo and Mitsui Mining & Smelting’s subsidiary, Hachinohe Smelting in Aomori. Hachinohe Smelting was hit by Japan Earthquake though that is the largest zinc smelter in Japan with total output capacity at 10,000 tonnes per month for distilled zinc and rectified zinc. Hachinohe Smelting recently restarted operation but, a zinc dealer source says, ingot supply would not be full within a month. There was several hundred million tonnes of electrolytic zinc import emergently after the disaster. Total supply and demand balance eased in late April thanks to the import. However, hot-dip galvanizers are still concerned on material shortage at present. It is said that alternate material may cause condition changes in plating solution liquidity or dross generation/deposition. Hot-dip galvanizers are very cautious to introduce alternate material for distilled zinc. At overseas, hot-dip galvanizers use various materials. Chinese hot-dip galvanizers add lead to electrolytic zinc while European galvanizers use only electrolytic zinc. Japanese hot-dip galvanizers are unique in using only distilled zinc. This market characteristic is causing material shortage for Japanese galvanizers.Japan Steel Scrap Composite Prices (Sangyo Press)
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