Production resumptions by enterprises, coupled with the boost from zinc prices, drive up the operating rate of die-casting zinc alloy [SMM Weekly Review of Die-Casting Zinc Alloy]

SMM News on June 13:

       This week, the operating rate of die-casting zinc alloy enterprises was recorded at 59.84%, up 6.16 percentage points WoW. On the raw material side, influenced by the downward movement of the zinc price center this week, some die-casting zinc alloy enterprises restocked at lower prices, driving a MoM increase in raw material inventories. However, some enterprises in the market, anticipating a bearish outlook for zinc prices in the future, still focused on normal procurement and consumption of long-term contract deliveries. On the finished product inventory side, influenced by improved downstream demand this week, the finished product inventories of die-casting zinc alloy enterprises decreased WoW. The upward movement in the operating rate of die-casting zinc alloy enterprises this week was partly due to the resumed production of some enterprises that had halted operations last week, leading to an overall increase in production. On the other hand, the downward movement in the futures market this week drove an improvement in end-use demand, with some enterprises increasing their operating rates. In terms of terminal order performance, the decline in zinc prices led to a slight improvement in orders across various downstream sectors. However, in terms of export order performance, influenced by production and transportation durations, there was no significant increase in new export orders in the market. Although the operating rate of die-casting zinc alloy enterprises increased this week due to lower prices and the resumed production of some enterprises, downstream consumption has now entered the off-season. It is expected that the operating rate of die-casting zinc alloy enterprises will decline to 59.06% next week.

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