Although End-Use Demand Improved, Price Fluctuations Squeezed Alloy Producers’ Profits [SMM Die-Casting Zinc Alloy Weekly Review]

        The operating rate of die-casting zinc alloy stood at 51.61% this week, up 3.26 percentage points WoW. Inventory side, the center of zinc prices moved lower this week, and increased purchases by terminal hardware factories improved shipments of die-casting zinc alloy enterprises and reduced finished product inventories; meanwhile, alloy plants showed stronger willingness to restock at low prices, and raw material inventory increased significantly. The rise in operating rates of die-casting zinc alloy enterprises this week was mainly driven by lower zinc prices, which prompted some bargain-hunting restocking across terminal orders in all segments. However, recent fluctuations in zinc, aluminum, and copper prices squeezed profits of die-casting zinc alloy enterprises to some extent, leading some enterprises to raise TCs. Looking ahead to next week, given that downstream players had completed phased restocking this week, the operating rate of die-casting zinc alloy enterprises was expected to fluctuate around 51.75%.