Zinc Price Center Declines While Die-Casting Zinc Alloy Operating Rates Rise [SMM Die-Casting Zinc Alloy Weekly Review]

This week, the operating rate of die-casting zinc alloy enterprises recorded 47.41%, up 1.63 percentage points WoW. On the inventory side, zinc prices pulled back during the week, and enterprises' purchasing enthusiasm improved somewhat, driving raw material inventories to rebound. As for finished product inventories, although some low-priced orders were concluded during the week, downstream cargo pick-up pace remained slow, and finished product inventories at die-casting zinc alloy enterprises only edged down slightly. This week, the rebound in operating rates at die-casting zinc alloy enterprises was mainly driven by the pullback in zinc prices, which spurred increased dip-buying by downstream buyers, with enterprise orders and shipments improving slightly from the prior period. From the end-use demand side, actual consumption in the current market remained relatively mediocre, with alloy market quotes diverging and price competition being intense. The recent improvement in market transactions stemmed more from phased restocking demand stimulated by falling zinc prices, while end-use consumption has not shown notable growth. Demand in the traditional hardware sector was overall mediocre, while the electronics orders segment was relatively better by comparison. Looking ahead to next week, operating rates at die-casting zinc alloy enterprises are expected to rise to fluctuate around 47.8%.