Labour Day Holiday Approaches, Operating Rate of Die-casting Zinc Alloy Declines [SMM Weekly Review of Die-casting Zinc Alloy]

SMM, April 30:

       This week, the operating rate of die-casting zinc alloy enterprises was recorded at 49.01%, down 9.97 percentage points WoW. In terms of inventory, zinc prices maintained a fluctuating trend this week. However, better outflows from warehouses for some enterprises led to a decrease in inventory, prompting an increase in raw material procurement. Meanwhile, enterprises that had previously purchased raw materials at low prices gradually picked up goods, resulting in a slight increase in overall raw material inventories. As for finished product inventories, most die-casting zinc alloy enterprises had a holiday schedule of 1-7 days during the Labour Day holiday, leading to an MoM increase in finished product inventories. The decline in the operating rate of die-casting zinc alloy enterprises this week was mainly due to the holiday arrangements of most enterprises during the week, resulting in an overall decrease in production. In terms of end-user order performance, driven by downstream pre-holiday inventory replenishment, the overall demand for sanitary ware and hardware orders improved this week. However, the demand for motorcycle and auto parts orders has weakened recently. At the same time, small hardware orders such as zippers have entered the off-season, and it is expected that subsequent consumer demand will gradually pull back. In addition, regarding export orders, affected by significant uncertainties in current tariffs, end-user enterprises have a strong wait-and-see sentiment and are cautious about their outlook. Next week, with the gradual resumption of production by die-casting zinc alloy enterprises, the operating rate of die-casting zinc alloy enterprises is expected to rise to 57.18%.

                                                                                                                                                》Click to view the SMM Metal Industry Chain Database