[SMM Analysis] the operating rate of Die casting Zinc Alloy in September may decrease slightly in October

Published: Oct 21, 2019 15:55 (GMT+8)
SMM10, March 21: according to SMM research, the operating rate of die-casting zinc alloy enterprises in September was 51.61%, an increase of 1.41 percentage points from the previous month and 3.46 percentage points from the same period last year.

SMM10, 21 March:

 

According to the SMM survey, the operating rate of die-casting zinc alloy enterprises in September was 51.61%, an increase of 1.41 percentage points over the previous month and 3.46 percentage points from the same period last year. According to SMM statistics, this survey for 30 die-casting zinc alloy enterprises, samples are mainly distributed in Shanghai, Zhejiang, Jiangsu, Fujian, Guangdong, Sichuan and other places, sample production 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 was 49.76%, an increase of 1.24 percentage points over the previous month; the operating rate of medium-sized enterprises with an annual production capacity of 250,000 tons was 45.18%, an increase of 1.81 percentage points over the previous month; and the operating rate of small zinc alloy enterprises with an annual production capacity of less than 20,000 tons was 74.56%, an increase of 1.89 percentage points over the previous month.

 

In September, the operating rate of die casting zinc alloy enterprises increased compared with the same period last year.

 

Compared with the previous month, die-casting zinc alloy enterprises this month reported an improvement in terminal orders, boosting the output and start of zinc alloy enterprises this month. In terms of scale, the order situation of large and medium-sized zinc alloy enterprises has improved significantly. This month, the production capacity has been further released, and the demand for various plates of the terminal has improved. Due to the production of alloys by smelters, some of the small alloy factories have extruded some of their market share and orders, and this part of the orders have also been transferred to large alloy factories. For small enterprises, although there is no more obvious capacity release, but the overall order is somewhat warmer than last month, the production trend of some smelters has increased, the cost is lower than the traditional die-casting zinc alloy enterprises, give some small alloy factories a certain amount of pressure, more small alloy factories face more inventory of finished products, but on the whole, production and start basically maintain normal.

 

From a regional point of view, last month, die-casting zinc alloy enterprises in South China generally reported a significant improvement in foreign trade orders, in which foreign trade orders for gift ornaments, zipper heads and plate buttons increased significantly compared with August, and domestic orders were steadily improving. There is no very obvious sign of increase. On the contrary, domestic orders increased significantly in East China, concentrated in hardware, sanitary ware and lock plates, while foreign trade orders continued to be poor during the year, with no obvious signs of improvement. Overall, sub-regional orders are divided, but overall, the increment is greater than the reduction, so the start of business has also been boosted.

 

In October, the terminal orders of die-casting zinc alloy enterprises are expected to be basically flat, but due to the long or short holiday shutdown of some enterprises on National Day, it has an impact on the output and operating rate. According to the enterprise production plan, the operating rate of die casting zinc alloy enterprises is expected to drop 0.6 percentage points in October compared with the previous month, recording 51.01%, an increase of 2.71 percentage points over the same period last year.

Data Source Statement: Except for publicly available information, all other data are processed by SMM based on publicly available information, market communication, and relying on SMM's internal database model. They are for reference only and do not constitute decision-making recommendations.

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