Die-Casting Zinc Alloy Operating Rates Rose This Week, Expected to Continue Rising Next Week [SMM Die-Casting Zinc Alloy Weekly Review]

SMM Aug 29:

      The operating rate of die-casting zinc alloy recorded 50.78% this week, up 0.32 percentage points WoW. Raw material side, zinc prices fluctuated, and the price pullback in the latter half of the week attracted some enterprises to stock up raw materials in small quantities. Finished product inventories side, as falling zinc prices stimulated downstream procurement demand, enterprise shipments improved, and finished product inventories saw a relatively significant decline. Die-casting zinc alloy enterprises' operating rates were basically flat WoW. Some large plants saw production increase driven by improved orders during the week, while some enterprises remained in a production suspension state. Terminal orders side, orders across sectors improved slightly with the price decline this week, boosting downstream enterprises' procurement enthusiasm. Export orders side, driven by the tariff "window period" and some small hardware orders, also showed slight improvement recently. Regionally, die-casting zinc alloy consumption in east China still demonstrated certain resilience recently, while demand in south China was relatively weak. Some enterprises are expected to resume production next week, which will drive the operating rate of die-casting zinc alloy enterprises to rise slightly to around 51.80%.