Maintenance of equipment at large factories ended during the week, and the operating rate of die-casting zinc alloy production increased [SMM Weekly Review of Die-casting Zinc Alloy]

SMM News on July 11:

       This week, the operating rate of die-casting zinc alloy enterprises stood at 53.94%, up 4.8 percentage points MoM. On the raw material side, the center of zinc prices continued to rise this week. Die-casting zinc alloy enterprises were cautious about purchasing at high prices, and spot order purchases decreased. The raw material inventories of enterprises remained basically flat compared to last week. In terms of finished product inventories, due to the strong price rally during the week, downstream purchasing demand continued to pull back. Die-casting zinc alloy enterprises had fewer outflows from warehouses, and finished product inventories increased slightly. The upward trend in the operating rate of die-casting zinc alloy enterprises this week was mainly due to the normal production of enterprises that had previously cut production due to equipment maintenance, driving an overall increase in production. Regarding end-use orders, zinc prices rose significantly this week, and orders across various downstream sectors showed a slight pullback. The end-use demand for various hardware orders such as door and window locks in the real estate sector was relatively sluggish. Orders in the auto parts sector also pulled back this week due to the rise in zinc prices. Orders for luggage zippers entered the seasonal off-season, with demand also remaining relatively weak. Currently, overall consumption across various end-use sectors is relatively sluggish, and enterprises are cautious about subsequent demand. It is expected that the operating rate of die-casting zinc alloy enterprises will slightly decline to hover around 53.80% next week.

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