Some enterprises entered the routine maintenance stage. This week, the operating rate of die-casting zinc alloy declined [SMM Weekly Review of Die-casting Zinc Alloy]

SMM News on July 18:

       This week, the operating rate of die-casting zinc alloy enterprises stood at 51.95%, down 2 percentage points MoM. On the raw material side, the center of zinc prices slightly declined at the beginning of the week, and die-casting zinc alloy enterprises mainly engaged in just-in-time procurement, with raw material inventories experiencing a slight MoM increase. Regarding finished product inventories, affected by the price pullback in the first half of the week, downstream procurement enthusiasm slightly rebounded, leading to increased outflows from warehouses and a decrease in finished product inventories of die-casting zinc alloy. This week, the operating rate of die-casting zinc alloy enterprises declined, primarily due to entering the off-season. Some enterprises began to arrange routine maintenance of equipment as orders weakened, resulting in an overall decrease in production and a slight decline in the operating rate. In terms of terminal orders, low prices at the beginning of the week drove an increase in procurement by small hardware enterprises at the terminal, but most of the procurement was for short-term restocking, and market demand still exhibited obvious characteristics of seasonal off-season consumption. Meanwhile, some enterprises in South China reported that orders for electronic products were relatively better among various terminal orders. In terms of exports, affected by the summer holiday in overseas markets, downstream export orders also slowed down. Currently, overall end-use demand remains weak, and the operating rate of die-casting zinc alloy enterprises is expected to remain around 52.44% next week.