The Labour Day holiday is approaching. What are the holiday arrangements for die-casting zinc alloy and zinc oxide enterprises? [SMM Analysis]

SMM News on April 30:

Die-casting Zinc Alloy

The total annual capacity of SMM's sample of die-casting zinc alloy enterprises is 1.6365 million mt. During the Labour Day holiday, SMM gathered information on 15 die-casting zinc alloy enterprises, with a total capacity of 739,300 mt, affecting zinc consumption by 5,173 mt. According to SMM, the average number of holiday days for enterprises during this Labour Day holiday was 2.9 days (ranging from 0 to 5 days), a decrease of 0.7 days compared to 3.6 days last year on a YoY basis. This was mainly influenced by the slight pullback in zinc price centers in April compared to the previous period, which drove an improvement in orders. Overall, the order performance of large enterprises remained relatively stable, while orders for small and medium-sized enterprises improved due to lower prices, leading to a reduction in the average number of holiday days. In terms of specific order performance, except for luggage and zipper orders, which entered the off-season in April, orders in other sectors remained relatively stable. Additionally, regarding export orders, frequent tariff disruptions in April made "rush exports" less evident in the market. Some end-users faced the risk of order cancellations and returns due to tariffs, but end-users who had engaged in entrepôt trade earlier were less affected by tariff disruptions. Currently, die-casting zinc alloy enterprises are cautious about subsequent export orders. In terms of inventory, most enterprises increased their raw material inventory due to the pullback in zinc prices.

Zinc Oxide

The total annual capacity of SMM's sample of zinc oxide enterprises is 1.087 million mt. SMM communicated with 12 zinc oxide enterprises about their holiday arrangements, involving a total capacity of 362,600 mt. Except for a few enterprises with statutory holiday arrangements, all other enterprises maintained normal production. This was mainly due to the production process of zinc oxide, which is not suitable for short-term shutdowns. In terms of order performance, the pullback in zinc price centers in April also drove the development of orders for ceramic-grade and feed-grade zinc oxide. Overall, order performance remained relatively stable. Rubber-grade zinc oxide orders weakened slightly due to high inventory levels at tyre factories, and enterprises were concerned about tyre export orders due to frequent tariff disruptions. In terms of inventory, most enterprises maintained their normal daily inventory levels due to holiday arrangements.

     (The above information is based on market collection and comprehensive assessment by the SMM research team. The information provided in this article is for reference only. This article does not constitute direct advice for investment research decisions. Clients should make cautious decisions and should not rely on this information to replace their independent judgment. Any decisions made by clients are unrelated to SMM.)

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