Under the off-season for consumption, the operating rate of die-casting zinc alloy continues to decline [SMM Weekly Review of Die-casting Zinc Alloy]

SMM News on August 1:

       This week, the operating rate of die-casting zinc alloy enterprises was recorded at 48.24%, down 2.79 percentage points MoM. On the raw material side, the center of zinc prices declined somewhat this week. However, amid the off-season for consumption, die-casting zinc alloy enterprises still focused primarily on just-in-time procurement, with raw material inventories only rising slightly MoM. In terms of finished product inventories, driven by the continuous decline in zinc prices in the latter half of the week, end-users' enthusiasm for purchasing increased, and cargo pick-up volumes rose, leading to a relatively significant reduction in enterprises' finished product inventories. The decline in the operating rate of die-casting zinc alloy enterprises this week was mainly due to the sluggish downstream consumption. On the one hand, some enterprises halted production during the week, and on the other hand, the production of some enterprises decreased compared to the previous period. Regarding terminal orders, the hardware accessories for real estate continue to be in the doldrums, with no improvement seen in orders for automotive parts and luggage zippers. Although the demand for electronic product orders stands out among terminal orders, the actual usage volume is relatively small, providing limited support for enterprise production. Looking ahead to next week, some enterprises plan to continue reducing production to cope with the impact of the off-season for consumption. It is expected that the operating rate of die-casting zinc alloy enterprises will continue to decline to around 47.51%.