SHANGHAI, Feb 20 (SMM) – Operating rates across Chinese manufacturers of zinc die-casting alloy came in at 35.95% in January, down 10.93 percentage points from December and down 4.19 percentage points from a year earlier, SMM data showed.
Fewer orders in the traditional off-season of January and pre-CNY maintenance at die-casting alloy producers lowered the operating rate as expected. Overall weakness in downstream demand dragged the rate from a year ago.
For February, CNY breaks are expected to expand decline in the operating rate, by 8.41 percentage points from January, to 27.54%. Mills of zinc die-casting alloy usually closed for more than eight days this month, due to a lack of orders in hand and remaining in-plant inventories of finished products.
On a yearly basis, operating rate is likely to stand slightly higher this month given a low base in February 2018.
