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[SMM analysis] Die casting zinc alloy weakens in June and the starting rate is expected to decline further.
Jun 11,2019 15:58CST
translation
Source:SMM
In May, the opening rate of die-casting zinc alloy enterprises is obviously weak, is the trade war a fatal blow to the orders of die-casting zinc alloy enterprises? What are the expectations for the start of work in June? According to the SMM survey:
The content below was translated by Tencent automatically for reference.

On the 11th of SMM6, news:

 

In May, the opening rate of die-casting zinc alloy enterprises is obviously weak, is the trade war a fatal blow to the orders of die-casting zinc alloy enterprises? What are the expectations for the start of work in June? According to the SMM survey:

Under the combined action of multiple pressures, the operating rate of die-casting zinc alloy enterprises further weakened in May, and the comparison was worse than the same period last year.

The terminal characteristics of die-casting zinc alloy enterprises are mainly foreign trade export types (hardware, zippers, sanitary ware, electronic locks, motor vehicle parts plate). In May, under the background of the heating up of the trade war between China and the United States, the orders of this kind of terminal enterprises have received a more obvious impact, directly associated with the weakening of the operating rate of die-casting zinc alloy enterprises. At the same time, in the case of poor domestic economic data, domestic demand has not improved, it is difficult to promote the increase of orders of die-casting zinc alloy enterprises.

In addition, incremental extrusion of zinc alloy from smelter. This year, some smelters are interested in the die-casting zinc alloy market, and the overall production plan has also shifted to the die-casting zinc alloy. As far as the production process is concerned, there is a natural advantage in the production of zinc alloy in the smelter, in which the freight is saved. And the necessary melting process of general die-casting zinc alloy enterprises, the die-casting zinc alloy produced by the refinery has more obvious cost advantages. To a certain extent, the order of traditional die-casting zinc alloy enterprises has been squeezed. According to the investigation of SMM, the processing fee of die-casting zinc alloy has been reduced to a certain extent.

According to the scale of enterprises, the loss of orders is mainly large and medium-sized enterprises, while the output of small die-casting zinc alloy plants is already small, and the downstream terminals are relatively blocked, and the type of foreign trade terminals are less, so that the overall start-up has not been significantly affected.

In June, zipper terminals officially entered the off-season, the impact of superimposed trade is still continuing, the overall start-up is expected to further weaken, according to the enterprise production plan, it is expected that the start-up rate of die-casting zinc alloy enterprises in June will drop by 4.48 percentage points from the previous month, recorded 42.66%, down 5.98 percentage points from the same period last year.

 

 

 

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