Die-Casting Zinc Alloy Export Performance Exceeds Expectations! What Will Happen Next? [SMM Analysis]

SMM March 21 News: According to customs data, China's die-casting zinc alloy exports in January were 531.78 mt, and in February were 151.43 mt. The cumulative exports for January-February reached 683.21 mt, up 37.89% YoY. Based on historical data, the cumulative exports for January-February this year also hit a four-year high. What are the reasons behind this, and how will China's die-casting zinc alloy exports develop in the future? From the data, the largest export destination for China's die-casting zinc alloy from January to February was Taiwan, China, with 362.97 mt; followed by Vietnam (135.42 mt) and Bangladesh (71.03 mt). On a monthly basis, the top export destinations in January and February were Taiwan, China, and Vietnam, respectively. SMM believes that the increase in exports is mainly due to the following reasons: First, the election of Donald Trump in the US has raised concerns among domestic companies about future international trade. As a result, many companies began to "rush exports" since the end of last year to avoid potential trade risks. In January-February this year, some companies continued to accelerate their shipment pace, leading to a significant increase in overall exports compared to the same period last year. Second, although the RMB appreciated slightly against the US dollar from mid-January, it remains at a relatively low level compared to recent years. Coupled with market concerns over future tariff policies, companies' enthusiasm for exports has significantly increased. What are the potential risks for China's die-casting zinc alloy exports in the future? Potential risk points include: One, after the "rush exports" from the end of last year to the beginning of this year, some companies have reported that foreign traders currently have high inventory levels. This high inventory may put pressure on China's short-term die-casting zinc alloy exports. Two, starting from March 4, the US imposed an additional 10% tariff on top of the existing 10% tariff. Additionally, since the beginning of this year, Trump has been making significant moves in sectors such as steel, aluminum semis, and copper semis. Whether these tariff policies will extend to die-casting zinc alloys is something we need to closely monitor. (The above information is based on market data and comprehensive assessments by the SMM research team. The information provided is for reference only and does not constitute direct investment advice. Clients should make prudent decisions and not rely solely on this information. Any decisions made by clients are unrelated to SMM.) 》Click to view the SMM Metal Industry Chain Database