Some enterprises resumed production during the week, driving an overall increase in operating rates [SMM Weekly Review of Die-casting Zinc Alloy]

SMM News on July 4:

       This week, the operating rate of die-casting zinc alloy stood at 49.14%, up 2.6 percentage points MoM. On the raw material side, zinc prices maintained a fluctuating trend this week. With current weak downstream demand and some market enterprises still holding a bearish outlook on subsequent zinc prices, procurement was mainly based on immediate needs, leading to a MoM decrease in raw material inventory. Finished product inventories of enterprises were basically flat MoM this week. The upward trend in the operating rate of die-casting zinc alloy this week was mainly driven by the resumption of production at some enterprises, which boosted overall production. However, in the South China market, some enterprises expected to resume production this week remained in a state of shutdown due to high inventory levels recently, resulting in the operating rate this week falling short of last week's expectations. Regarding terminal orders, orders for hardware, sanitary ware, door and window locks, and other items remained in the doldrums. Demand for luggage zippers and jewelry hardware orders was sluggish, with no significant bright spots in downstream consumption. Looking ahead to next week, it is expected that some enterprises will resume production next week, so the operating rate of die-casting zinc alloy is expected to continue to rise slightly to 52.27%.

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