Macro Sentiment and Export Orders Improve, Operating Rate of Die-casting Zinc Alloy Rises [SMM Weekly Review of Die-casting Zinc Alloy]

SMM, May 16:

       This week, the operating rate of die-casting zinc alloy enterprises was recorded at 59.08%, up 4.48 percentage points WoW. On the raw material side, affected by the rise in zinc prices this week, the procurement of die-casting zinc alloy enterprises decreased somewhat, leading to a slight decline in their raw material inventories. On the finished product side, some enterprises indicated that after the Labour Day holiday, the sentiment of end-users for procurement and cargo pick-up had weakened somewhat, resulting in a slight increase in finished product inventories recently. The upward trend in the operating rate of die-casting zinc alloy enterprises this week was mainly due to two factors: on the one hand, enterprises that resumed production mid-week last week operated normally this week, driving an overall increase in production; on the other hand, some enterprises experienced a slight improvement in terminal export orders during the week, with increased downstream demand, which also contributed to an overall increase in production. In terms of terminal order performance, influenced by the easing of macro tariffs this week, orders across various sectors improved slightly. However, due to the abundance of market-substitutable products and intense low-price competition within the industry, the overall demand for hardware fittings in the real estate sector remained average. Regarding export orders, influenced by the easing of tariffs this week, orders for small hardware from end-users improved somewhat, but there was no large-scale "rush to export" observed in the market. With the overall improvement in current international trade relations, it is expected that the operating rate of die-casting zinc alloy enterprises will reach around 59.40% next week.

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