Downstream actual demand was relatively mediocre, and the operating rate of die-casting zinc alloy fluctuated rangebound [SMM Die-Casting Zinc Alloy Weekly Review]

SMM November 28:

      The operating rate for die-casting zinc alloy recorded 51.30% this week, up 0.28 percentage points WoW. Inventory side, zinc prices fluctuated rangebound this week, prompting die-casting zinc alloy enterprises to restock modestly on dips and continuously pick up goods, leading to a slight increase in raw material inventories. For finished product inventories, some alloy plants experienced slightly improved shipments during the week, resulting in a minor decline in finished product inventories. The operating rate for die-casting zinc alloy edged up slightly, driven by minor production increases at some enterprises. However, approaching year-end, some alloy plants reduced downstream long-credit-term and debt-ridden customers to ensure corporate cash flow and profits. From the perspective of end-user orders, current electronics orders remained relatively good, but orders for hardware used in real estate and automotive parts, which account for a large proportion, showed mediocre overall demand. Meanwhile, enterprises reported that current demand for end-user luggage zipper orders fell short of expectations. Looking ahead to next week, with zinc prices generally maintaining narrow fluctuations and downstream actual demand being mediocre, the operating rate for die-casting zinc alloy enterprises is expected to hover around 51.38%.