High Prices Suppress Downstream Demand, Die-Casting Operating Rates Continue to Decline [SMM Die-Casting Zinc Alloy Weekly Review]

       This week, the operating rate of die-casting zinc alloy recorded 49.52%, down 0.38 percentage points WoW. Inventory side, zinc prices fluctuated at highs this week, alloy plants made few purchases, large plants mainly accepted long-term contract deliveries, while small plants mostly purchased as needed. Finished product inventories side, affected by difficulties in shipments, some enterprises controlled or halted production during the week, thus finished product inventories were basically flat compared to last week. Zinc prices surged to a one-year high during the week, end-users showed significant fear of high prices, and purchase willingness was low. Order demand slowed down across various sectors, meanwhile some enterprises reported that under high price pressure, end-user hardware factories are expected to take early holidays, electroplating plants in South China will also arrange holidays around month-end, overall market demand was in the doldrums. Additionally, recent price spreads between zinc and aluminum, and zinc and copper fluctuated significantly, some enterprises still raised TCs during the week. Next week, as some alloy plants gradually resume production, the operating rate of die-casting zinc alloy is expected to rise slightly and fluctuate around 49.71%.