Enterprises resumed production one after another during the week, and the operating rate of die-casting zinc alloy increased this week [SMM Weekly Review of Die-casting Zinc Alloy]

SMM, June 6:

       This week, the operating rate of die-casting zinc alloy enterprises stood at 53.68%, up 4.87 percentage points MoM. On the raw material side, zinc prices maintained a fluctuating trend this week. Meanwhile, downstream demand weakened after the Dragon Boat Festival, and die-casting zinc alloy enterprises mainly made just-in-time procurement. As a result, raw material inventories decreased MoM. In terms of finished product inventories, due to the recent decline in demand, some enterprises saw a slight increase in finished product inventories, driving finished product inventories to increase MoM. The upward trend in the operating rate of die-casting zinc alloy enterprises this week was mainly due to production resumptions by most enterprises during the week, which drove overall production to rise. However, a small number of enterprises in the market are still in a state of halting production and consuming inventories, coupled with generally weak downstream demand after the holiday. Therefore, the operating rate did not reach the expected level. In terms of terminal order performance, influenced by the gradually weakening end-use demand, except for a few enterprises in east China reporting relatively stable orders for small hardware in the real estate sector, most enterprises indicated that orders for traditional hardware accessories have been in the doldrums recently. In north China, orders for luggage zippers saw a slight rebound during the week, while orders for electronic products have been relatively stable recently. However, the cargo pick-up pace of end-users has also slowed down. Next week, with the resumption of production by halted enterprises, the operating rate of die-casting zinc alloy enterprises is expected to rise to 57.20%.

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