End-use demand continued to weaken, and the operating rate of die-casting zinc alloy declined this week [SMM Weekly Review of Die-casting Zinc Alloy]

SMM News on July 25:

       This week, the operating rate of die-casting zinc alloy enterprises stood at 51.03%, down 0.92 percentage points MoM. On the raw material side, zinc prices rose significantly this week compared to last week, leading to a decline in the purchasing enthusiasm of die-casting zinc alloy enterprises and a MoM decrease in raw material inventories. On the finished product inventory side, due to the price increase, some enterprises slowed down their shipment pace, resulting in a slight MoM increase in finished product inventories. The decline in the operating rate of die-casting zinc alloy enterprises this week was mainly due to the impact of weakening downstream demand on some enterprises in recent times, leading to a reduction in production. Although some enterprises resumed production during the week, it had limited impact on boosting the overall operating rate. In terms of terminal orders, the end-use demand of some enterprises in east China and south China has recently shown a significant pullback. The price increase has triggered fear of high prices among terminals, with domestic and export demand for orders such as luggage, zippers, and small hardware being average. The demand for real estate hardware orders has been sluggish, but the order performance of some large factories remained relatively normal this week. Given the significant fluctuations in zinc prices and the market entering the off-season, enterprises are cautious about subsequent consumption. It is expected that the downstream operating rate of die-casting zinc alloy enterprises may slightly decline to 50.56%.