Enterprises Resume Production One After Another, Operating Rates of Die-Casting Zinc Alloy Producers Rise [[SMM Weekly Review of Die-Casting Zinc Alloy]]

SMM, May 9:

       This week, the operating rate of die-casting zinc alloy enterprises reached 54.60%, up 5.59 percentage points WoW. On the raw material side, after the holiday, some die-casting zinc alloy enterprises conducted just-in-time procurement and continuously picked up goods to replenish the inventory consumed during the holiday. Therefore, the changes in enterprises' raw material inventories were relatively small. In terms of finished product inventories, the consumption of inventories by some enterprises during the Labour Day holiday drove finished product inventories lower. The upward trend in the operating rate of die-casting zinc alloy enterprises this week was mainly due to the end of the Labour Day holiday, with enterprises gradually resuming production, which drove an overall increase in production. In terms of terminal order performance, some enterprises reported that orders for electronic products remained robust, with downstream products mainly including AI server products. Meanwhile, the demand for LED headlight components in automotive parts has been good recently. However, the overall demand for traditional small hardware accessories, such as door and window locks, and hardware bathroom fittings, is currently weak. Regarding export orders, enterprises currently reported that there has been a partial decrease in export orders from end-users recently. Due to tariff uncertainties, there have been fewer instances of rushed exports to the market, and enterprises are cautious about their outlook for subsequent orders. Next week, with the normal production of enterprises that resumed operations mid-week, the operating rate of die-casting zinc alloy enterprises is expected to rise to 58.22%.

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