Some Enterprises Resume Normal Production, Die-casting Zinc Alloy Output Rises This Week [SMM Die-casting Zinc Alloy Weekly Review]

SMM August 22 News:

      This week, the operating rate of die-casting zinc alloy enterprises was recorded at 50.46%, up 2.85 percentage points MoM. Raw material side, the center of zinc prices fluctuated downward this week, and downstream restocking at lower prices led to an increase in raw material inventory; regarding finished product inventories, the decline in prices boosted the purchasing enthusiasm of end-users, leading to improved outflows from warehouses for die-casting zinc alloy enterprises, with a slight decrease in finished product inventories. The main reason for the increase in the operating rate of die-casting zinc alloy enterprises this week was that some enterprises resumed normal production after the completion of equipment maintenance, driving an overall increase in production. In terms of end-use market orders, recent demand for electronic product orders in South China remains strong, but some enterprises also reported that the issue of order payment terms is quite prominent. Some enterprises in East China reported that the demand for locks and bathroom fixtures has been good recently, while the demand for craft items has been poor. Overall, there has not been a significant improvement in market demand, with most of the demand during the week driven by restocking at lower prices. Domestic end-use market consumption of die-casting zinc alloy remains relatively weak, and export orders have not shown any noticeable improvement, with Christmas hardware orders expected to take more time to materialize. Next week, the operating rate of die-casting zinc alloy enterprises is expected to hover around 50.31%.