[SMM Analysis] Export orders decline obviously Die casting Zinc Alloy start decline becomes a foregone conclusion

Published: Apr 10, 2020 21:43
SMM4 month 10: into April, in addition to a few small and medium-sized alloy factories to do domestic trade orders said that the order is relatively stable, large and medium-sized die-casting zinc alloy factories are pessimistic about terminal orders.

SMM4, March 10: in March, the operating rate of die-casting zinc alloy enterprises was 45.16%, a significant increase of 33.82 percentage points over the previous month, and a decrease of 6.73 percentage points compared with the same period last year. On the whole, the starting rate of die casting zinc alloy enterprises in March is significantly higher than that in February. The main reasons are as follows:

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1. With the effective control of the epidemic situation in China, the workers have returned one after another, and the problem of logistics and transportation has been solved, and the production of the alloy factory has been resumed.

2. After the alloy factory resumes construction, it actively delivers the pre-year order, at the same time, after the end customer starts construction one after another, the order of the alloy factory shows a restorative growth;

3. When the price of zinc falls greatly, the purchasing demand increases when the price falls, which leads to the increase of the output of the alloy factory.

On the whole, under the continuous recovery of terminals and the demand for replenishment, domestic demand supports the overall demand, but on the external demand side, after the completion of the original export orders, the new orders are beginning to be reflected by the decline in external demand. from a sub-plate point of view, the domestic demand in the sanitary industry has recovered compared with the previous period, and in the export aspect, the initial stage is still digesting the orders before, and the decline in demand is not obvious. In the second half of the month, it was found that overseas orders plummeted, affecting normal production; Affected by the epidemic situation, clothing, luggage and other domestic sales declined, resulting in limited domestic orders of zipper factories, the decline of export orders began to appear in the later stage, the shutdown and production of clothing and luggage factories increased, and the demand decreased. Domestic demand in the jewelry industry is recovering, but orders exported to the Middle East in Yiwu and other places have been greatly affected by the epidemic, and the decline in production is more obvious. Automobile production and sales fell, more than 100 automobile factories in 26 countries around the world stopped production, the overall order is poor; hardware, locks and so on in the case of slowing domestic demand and falling external demand, the overall performance is average.

In April, except for a few small and medium-sized alloy factories that mainly make domestic trade orders, large and medium-sized die casting zinc alloy factories are pessimistic about terminal orders. On the one hand, some of their end customers are enterprises involved in export. the current export orders are greatly affected by the overseas epidemic, overseas cancellation or postponement of orders more, affecting demand; On the other hand, when the price of zinc fell sharply in the middle and late March, the purchase volume was magnified, and some terminals had overdrawn the amount in April and May ahead of schedule, resulting in a decline in short-term demand. According to the enterprise production plan, the operating rate of die-casting alloy is expected to drop by 15.8 percentage points in April compared with the same period last year, reaching 29.36 percent, down 25.18 percentage points from the same period last year.

 

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