Die-casting Zinc Alloy Orders Fall Sharply on End User Suspension

SHANGHAI, Aug. 10 (SMM)--That being said more and more medium and small size enterprises in Zhejiang and Guangdong province closed In recent months, many of which are clothes and bathroom accessories producers, and which are die-casting zinc alloy downstream enterprises. According to SMM sources, die-casting zinc alloy industry was significantly affected as end orders fell notably.

Zhejiang province officially refuted talks of the shutdowns early in June, believing the outlook of local medium and small scale enterprises is still brisk. But talks a larger number of medium and small size enterprises compared to 2008 will shut down are becoming more and more popular.

Die-casting zinc alloy manufacturers are facing heavy pressure concerning costs, profits, cash flow especially suspension and shutdowns at end manufacturers.

High inflation has pushed up raw material prices, but enterprises were not able to raise product prices, which are even unsalable. Orders at zinc downstream manufacturers are low as end enterprises suspended production or closed due to disappointing sales, and some enterprises said they had suspended die-casting operations and only maintain production of raw materials.

Die-casting zinc alloy industry was restricted in 2011 due mainly to low orders, especially at higher costs, enterprises preferred to suspend production. In addition, profits at those enterprises were significantly cut due to increasing financial and manpower costs, which is a result of loans and manpower shortages. Export orders were more disappointing due to economic turmoil overseas, with pessimistic outlook of die-casing zinc alloy industry during 2011.

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