Enterprises Resume Normal Production, Die-Casting Zinc Alloy Operating Rate Rises [SMM Die-Casting Zinc Alloy Weekly Review]

The operating rate of the die-casting zinc alloy industry recorded 48.97% this week, up 3.64 percentage points WoW. Inventory side, zinc prices centered lower at the beginning of the week, prompting small purchases by enterprises; coupled with the gradual arrival of some long-term contracts during the week, raw material inventory edged up slightly. In the first half of the week, lower zinc prices improved enterprise shipments, but as prices rose, shipments became difficult, and finished product inventories also posted a small buildup. The rise in operating rates this week was mainly due to production resumptions by enterprises that were shut down last week. End-use demand side, affected by the off-season, orders across various die-casting zinc alloy segments remained weak; traditional hardware demand was sluggish, and electronics orders, which previously had good demand, also slowed upon entering the off-season. Looking to next week, die-casting zinc alloy operating rates are expected to remain weak, with the operating rate fluctuating around 48.87%.