Increasing Cases of Enterprises Controlling and Cutting Production, Die-Casting Zinc Alloy Operating Rates Decline [SMM Die-Casting Zinc Alloy Weekly Review]

This week, the operating rate of die-casting zinc alloy was recorded at 46.59%, down 2.38 percentage points WoW. Inventory side, zinc prices fluctuated at highs this week, alloy plants' shipment pace slowed, and procurement demand also weakened. However, long-term contracts signed by large plants were gradually delivered recently, so raw material inventory inched up slightly, but the overall change was small. The decline in the operating rate was mainly due to weakening end-use demand, with alloy plants struggling with shipments, leading to production control and cuts. Demand side, end-use consumption was in the traditional off-season, and orders across downstream sectors were generally weak. Demand for real estate hardware accessories was relatively sluggish; orders in the auto parts sector entered the off-season; demand in traditional consumer sectors such as luggage zippers and bathroom hardware was weak; electronic product orders also entered the off-season, with demand slowing down. Downstream end-users generally purchased as needed, and willingness for large-scale stockpiling was insufficient, continuing to suppress die-casting zinc alloy consumption. Looking ahead to next week, affected by persistently weak end-use consumption, the die-casting zinc alloy operating rate is expected to continue fluctuating around 46.49%.