Die-casting zinc alloy enterprises have holiday arrangements, and the operating rate declined significantly this week [SMM Weekly Review of Die-casting Zinc Alloy]

SMM News on May 30:

       This week, the operating rate of die-casting zinc alloy enterprises was recorded at 48.81%, down 7.60 percentage points WoW. On the raw material side, the center of zinc prices moved upward this week, coupled with relatively high spot premiums/discounts in the market, leading to a decrease in enterprises' stocking demand and a reduction in raw material inventories. In terms of finished product inventories, due to the holiday arrangements for the Dragon Boat Festival by many enterprises, there was a slight increase in enterprises' finished product inventories. The decrease in the operating rate of die-casting zinc alloy enterprises this week was mainly due to the 1-3 day holiday arrangements for the Dragon Boat Festival by many enterprises, resulting in an overall reduction in production. Regarding the performance of end-user orders, influenced by the gradual entry of downstream consumption into the off-season, the overall demand for orders across various domestic end-user sectors has been relatively weak recently. Meanwhile, in terms of export orders, the recently improved orders are mostly the resumption of previously suspended orders, but there are currently relatively few new export orders. After the Dragon Boat Festival holiday next week, enterprises will basically resume normal production status. However, influenced by the gradual weakening of downstream consumption, the operating rate of die-casting zinc alloy enterprises is expected to be around 57.86%.

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