Galvanized steel manufacturers are expected to feel a pinch in operating margins - thanks to the steady rise in global zinc prices. Accordingly, this sector is incapable to pass the increased cost of production to consumers. Zinc is defiant to rust, thus - it is used to coat steel for making lamp posts, car doors and beams. It is combined with copper to make brass. Two-thirds of its use is as an input for galvanizing steel. Now, the prices of zinc have moved up 21 per cent since April 2014, on reports of the closure of mines and galvanized steel manufacturers in India face a double problem. Lower demand from the infrastructure sector, the largest consumer of galvanized steel, has affected largely business sentiment in this segment. With global oversupply, exports will be affected as well.
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