Enterprises Gradually Resumed Normal Production, with a Notable Increase in Operating Rates for Die-Casting Zinc Alloy [SMM Weekly Review of Die-Casting Zinc Alloy]

This week, the operating rate of die-casting zinc alloy came in at 49.46%, up 7.61 percentage points MoM. Inventory side, the center of zinc prices shifted lower this week, downstream enterprises’ procurement enthusiasm rebounded, and more pricing-based purchases were seen in the market. Both order-taking and shipments at alloy enterprises improved, driving an increase in raw material inventory and a slight decline in finished product inventories for die-casting zinc alloy enterprises this week. The operating rate rebounded notably this week, mainly because enterprises previously subject to production constraints due to extreme weather gradually resumed normal production. End-use consumption side, enterprises generally reported that current zinc price fluctuations had a significant impact on downstream procurement pace. After zinc prices pulled back this week, end-users’ enthusiasm for pricing-based purchases increased and market transactions improved, supporting better shipments for alloy enterprises; when zinc prices rose, downstream wait-and-see sentiment intensified, purchase willingness declined, and enterprise shipments correspondingly weakened. As the market was about to enter late August, there were still no clear signs of a notable improvement in end-use consumption, and the traditional “September peak season” still needed time to transmit. In addition, some enterprises were expected to slow down their production pace next week due to higher finished product inventories, and the operating rate of die-casting zinc alloy was expected to edge down and fluctuate around 48.75%.