Affected by Profits, Operating Rates Decline; Die-Casting Zinc Alloy Operating Rates Fall [SMM Die-Casting Zinc Alloy Weekly Review]

SMM December 12 news:

      This week, the operating rate of die-casting zinc alloy was 49.56%, down 1.51 percentage points WoW. In terms of inventory, zinc prices fluctuated at highs, weakening the purchasing enthusiasm of die-casting zinc alloy enterprises, while the shipment pace slowed down, leading to slight inventory buildup in some enterprises. Consequently, raw material inventories decreased, while finished product inventories increased. The significant decline in the operating rate of die-casting zinc alloy enterprises this week was mainly due to slight production cuts by some enterprises as zinc prices rose recently. Additionally, a major plant recently experienced a decline in operating rate due to insufficient profit support, contributing to the decrease in the die-casting zinc alloy operating rate this week. Regarding terminal orders, affected by the recent rise in zinc prices, demand for daily hardware orders in the real estate sector, such as bathroom hardware and furniture hardware accessories, was weak, and demand for decorative small accessories was also relatively average. Looking ahead to next week, affected by the current strong performance of zinc prices, enterprises are cautious about the subsequent market, so the operating rate is expected to hover around 49.22% in Fujian. If enterprise profits improve, the die-casting zinc alloy operating rate is expected to rise slightly.