Production pace of some enterprises has slowed down, with operating rates of die-casting zinc alloy producers declining this week [SMM Weekly Review of Die-casting Zinc Alloy]

SMM, May 23:

       This week, the operating rate of die-casting zinc alloy enterprises was recorded at 56.22%, down 2.86 percentage points WoW. On the raw material side, zinc prices maintained a fluctuating trend this week, and enterprises purchased some raw materials at lower prices, leading to a slight increase in raw material inventories. In terms of finished product inventories, affected by the rise in zinc prices mid-week, the purchasing sentiment of downstream enterprises weakened, resulting in a decrease in outflows from warehouses and a slight increase in finished product inventories. The increase in the operating rate of die-casting zinc alloy enterprises this week was mainly due to the weakening demand from downstream customers of some large enterprises. To reduce finished product inventories, these enterprises slowed down their production pace. In terms of end-user order performance, traditional small hardware orders have improved slightly recently, while demand for electronic product orders has weakened slightly. In addition, regarding export order performance, enterprises in east China and south China have reported an improvement in export orders, most of which were orders that had been postponed or canceled due to tariff suspensions or cancellations earlier. Next week, some die-casting zinc alloy enterprises will have holidays for the Dragon Boat Festival, and it is expected that the operating rate of die-casting zinc alloy enterprises may decline slightly to 56.10%.

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