Affected by Major Plant Shutdowns, This Week's Die-Casting Operating Rate Declined [SMM Die-Casting Zinc Alloy Weekly Review]

SMM March 7 News:

This week, the operating rate of die-casting zinc alloy recorded 54.25%, down 2.74 percentage points WoW. Inventory side, zinc prices rose significantly this week, and downstream mainly engaged in just-in-time procurement, with raw material prices basically flat WoW. The decline in the operating rate of die-casting zinc alloy this week was mainly due to a major factory halting production to consume its previously accumulated inventory, leading to an overall decrease in production. Regarding specific end-user orders, companies reported that as downstream enterprises gradually resumed operations, downstream demand improved, particularly reflected in orders for small hardware items such as bottle caps and zippers. Orders for electronic products remained relatively stable, while hardware supporting the real estate sector was still in the recovery phase. Meanwhile, some companies noted a slight mid-week increase in zinc prices, which caused downstream demand to pull back. Currently, zinc prices are maintaining a fluctuating trend, and consumption across downstream sectors is gradually improving. It is expected that with the resumption of production by major factories next week, the operating rate of die-casting zinc alloy may reach 59.38%.

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