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[SMM analysis] the working rate of die-casting zinc alloy weakens again in June. Can it be improved in July?

iconJul 11, 2019 17:28
Source:SMM
SMM7 11: the operating rate of the die-casting zinc alloy industry in June was lower than that in May. The reasons are as follows: SMM analysis:

On the 11th of SMM7, news:

The start-up rate of die-casting zinc alloy industry in June was lower than that in May. The reasons are as follows: SMM analysis:

Monthly operating rate trend Diagram of Die casting Zinc Alloy Enterprises

According to the SMM survey, the operating rate of die-casting zinc alloy enterprises in June was 46.32%, down 0.82% from the previous month and 2.32% from the same period last year. According to SMM statistics, this survey is 30 die-casting zinc alloy enterprises, the samples are mainly distributed in Shanghai, Zhejiang, Jiangsu, Fujian, Guangdong, Sichuan and other places, sample capacity of 989400 tons, of which idle capacity of 42000 tons.

In the survey sample, the operating rate of large die-casting zinc alloy enterprises with an annual production capacity of 50,000 tons or more is 42.00%, which is 1.06% lower than that of the previous month, 46.63% of the medium-sized enterprises with an annual production capacity of 20,000 tons or more, an increase of 0.22% from the previous month, and 74.79% of the small zinc alloy enterprises with an annual production capacity of less than 20,000 tons, down 0.82% from the previous month.

In June, the off-season effect of die-casting zinc alloy enterprises deepened, and the operating rate decreased slightly compared with the previous month.

Generally speaking, the die-casting zinc alloy enterprises ushered in the traditional consumption off-season, superimposed trade factors and the impact of the global economic downturn, the overall terminal demand was affected, and the amount of new orders was obviously narrowed. As a result, the finished product inventory of die-casting zinc alloy enterprises accumulated more, and there was a slight reduction in production in June, mainly in the consumption of pre-finished product inventory, the willingness to produce has become weaker, and the output has recorded a certain decline.

Sub-plate point of view, die-casting zinc alloy enterprise terminal plate is basically divided into hardware, zipper, bathroom, electronic locks, automobile and motor vehicle accessories plate. Among them, the zipper plate accounts for a large proportion of foreign trade orders, and due to the subsequent impact of trade friction between China and the United States, zipper export orders are greatly affected. The superimposed zipper plate belongs to the traditional consumption off-season from June to July. The output recorded a further decline; due to the continuous contraction of the automobile industry, as well as the continuous decline in production and sales volume compared with the same period last year, the order situation has also been slightly worse. In addition, hardware, bathroom and other plates have not yet seen a significant decline.

In July, the terminal order of die-casting zinc alloy enterprises is expected to continue to be weak, in which the zipper plate may have a worse trend, superimposed some of the summer die-casting zinc alloy maintenance plan, the overall operating rate is expected to further weaken. According to the enterprise production plan, it is expected that the operating rate of die-casting zinc alloy enterprises will drop by 2.96 percentage points in July from the previous month, recording a record of 43.36 percent, down 6.16 percentage points from the same period last year.

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For queries, please contact Michael Jiang at michaeljiang@smm.cn

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