SHANGHAI, Jun 10 (SMM) – Operating rates across Chinese manufacturers of zinc alloy die-castings declined in May as the trade conflict with the US depressed export orders and domestic demand failed to improve.
The rates averaged 47.14% in May, down 7.4 percentage points from April and down 3.54 percentage points from May 2018. Poor overseas orders in May accounted for most of the loss as most Chinese producers of zinc alloy die-castings engage in export businesses.
Greater output of zinc alloy at smelters also attracted part of the downstream demand for traditional zinc alloy die-castings. This lowered the processing charges of zinc alloy die-castings in May.
The continued impact of US-China trade war and a seasonal lull in the downstream zipper sector will further lower operating rates across zinc alloy die-castings producers, to 42.66% in June. This stands 4.48 percentage points lower on the month and 5.98 percentage points lower on the year.
