Affected by the Chinese New Year break, the operating rate of die-casting zinc alloy plummeted this week [SMM Die-Casting Zinc Alloy Weekly Review].

SMM, January 24:

This week, the operating rate of die-casting zinc alloy recorded 19.95%, down 33.78 percentage points WoW. Raw material side, although zinc prices continued to decline this week, downstream enterprises gradually went on holiday, resulting in very few market buyers and a decrease in raw material inventory WoW. Regarding finished product inventories, despite the decline in zinc prices this week prompting some end-user factories to buy the dip, overall finished product inventories showed relatively small changes due to the gradual suspension of logistics operations this week. The decline in the operating rate of die-casting zinc alloy this week was mainly due to most enterprises having ceased production for the holiday. Except for a few large factories that continued production this week, small and medium-sized alloy factories across regions had already stopped production. Additionally, many large alloy factories began wrapping up their work mid-week, with some enterprises also starting their holidays mid-week. From the current actual order performance, overall downstream consumption was sluggish due to the Chinese New Year break. Apart from a few electronic product orders that still showed demand recently, other sectors performed generally. It is expected that next week, the die-casting zinc alloy market will see increasingly weaker overall demand due to the Chinese New Year break.

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