Downstream consumption was weak during the week, and the operating rate of die-casting zinc alloy declined [SMM Weekly Review of Die-casting Zinc Alloy]

SMM August 15 News:

      This week, the operating rate of die-casting zinc alloy enterprises was recorded at 47.61%, down 0.82 percentage points MoM. On the raw material side, zinc prices moved downwards after a higher opening this week, and die-casting zinc alloy enterprises had a strong wait-and-see sentiment, mainly making just-in-time procurement. Regarding finished product inventories, affected by this week's prices, downstream procurement demand was weak, and finished product inventories of die-casting zinc alloy enterprises increased slightly. The decline in the operating rate of die-casting zinc alloy this week was mainly due to some enterprises shifting production to electric furnaces due to the slowdown in end-use demand recently, resulting in a slight decrease in production. Additionally, some enterprises also experienced slight production cuts due to demand constraints. Multiple factors contributed to the slight decline in the operating rate this week. In terms of terminal orders, zipper orders have been relatively average recently. Meanwhile, in the real estate hardware sector, such as doors, windows, and locks, performance has also been in the doldrums. Orders for small accessories and toys still exhibit obvious off-season characteristics. Currently, affected by the impact of low-priced alloys and the seasonal consumption off-season, the operating rate of die-casting zinc alloy enterprises is low. Next week, some die-casting zinc alloy plants are expected to resume production, and downstream operating rates of die-casting zinc alloy are expected to rise slightly to 47.93%.