SMM June 20 News:
This week, the operating rate of die-casting zinc alloy enterprises was recorded at 55.12%, down 4.72 percentage points WoW. On the raw material side, zinc prices maintained a fluctuating trend this week. Although some end-users picked up goods during the week, most enterprises adopted a just-in-time procurement strategy, purchasing based on sales, leading to a slight MoM decline in raw material inventories. On the finished product inventories side, affected by the weakening end-use demand, the finished product inventories of die-casting zinc alloy enterprises increased WoW this week. The decline in the operating rate of die-casting zinc alloy enterprises this week was mainly due to two factors: on the one hand, some large enterprises experienced reduced production due to equipment issues during the week; on the other hand, some enterprises that had previously performed well in export orders saw weakened end-use demand recently, leading to a decline in production. In terms of end-user orders, some enterprises recently experienced a slight recovery in orders for electronic products. Meanwhile, some enterprises also saw an improvement in orders for luggage zippers due to an increase in customers recently. However, orders for small hardware in real estate and auto parts both weakened. In terms of export orders, orders for small hardware products, which had previously performed well, have been generally weak recently. Currently, the order demand in various downstream sectors is gradually weakening, and the shipment pace of die-casting zinc alloy enterprises is slowing down. Some enterprises plan to take a holiday next week to consume inventories. It is expected that the operating rate of die-casting zinc alloy enterprises will decline to 53.04% next week.
