Enterprises gradually resume normal production, die-casting zinc alloy operating rate rises [SMM Die-Casting Zinc Alloy Weekly Review]

This week, the operating rate of die-casting zinc alloy was recorded at 50.28%, up 2.62 percentage points WoW. Inventory side, zinc price center moved higher this week. Although purchases by die-casting zinc alloy enterprises decreased somewhat, enterprises successively picked up goods ordered at low prices last week, coupled with recent deliveries of long-term contracts, raw material inventories continued to rise. Finished product inventories side, downstream enterprises also engaged in dip-buying last week, but affected by generally soft demand, cargo pick-up pace at downstream hardware factories was slow, and finished products at die-casting zinc alloy enterprises saw no significant destocking. The rise in operating rate this week was mainly because enterprises that were shut down last week for the Dragon Boat Festival holiday gradually resumed normal production this week, thus driving the operating rate higher. However, end-user order fundamentals were weak. Although downstream enterprises conducted dip-buying stockpiling operations, cargo pick-up progress remained slow, and domestic demand was relatively sluggish. Looking ahead to next week, the operating rate of die-casting zinc alloy enterprises is expected to continue edging down to fluctuate around 50.21%.