High Prices Suppress Market Demand, Die-Casting Zinc Alloy Market Performance Remains Weak [SMM Die-Casting Zinc Alloy Weekly Review]

This week, the operating rate of die-casting zinc alloy recorded 44.51%, down 2.26 percentage points WoW. Inventory side, zinc prices fluctuated at high levels this week, die-casting zinc alloy plants made just-in-time procurement at low prices, and raw material inventories edged up; finished product inventories changed relatively little WoW. This week's operating rate pulled back, mainly disrupted by extreme weather in east China, with some enterprises experiencing temporary production halts. End-use consumption side, constrained by high zinc prices, downstream hardware accessories enterprises showed strong fear of high prices, and those with restocking demand still focused on just-in-time procurement. Currently, terminal orders have improved limitedly, the market is in a heavy wait-and-see mood, and the "September peak season" characteristics have not yet emerged. Meanwhile, according to enterprise feedback, against the backdrop of high raw material prices, the market remains cautious about short-term consumption expectations. However, looking ahead to next week, enterprises that halted production due to weather this week plan to resume production next week, and the die-casting zinc alloy operating rate is expected to edge up to fluctuate around 46.94%.