Market Demand Is Sluggish, Die-casting Zinc Alloy Operating Rate Continues to Decline [SMM Die-casting Zinc Alloy Weekly Review]

This week, the operating rate of die-casting zinc alloy producers recorded 46.26%, down 0.33 percentage points WoW. Inventory side, the zinc price center moved noticeably higher this week, dampening downstream purchasing enthusiasm. Raw material inventories declined. As for finished product inventories, although high prices during the week suppressed buying demand from downstream hardware manufacturers, recently some enterprises actively controlled production to reduce finished product inventories, leaving finished product inventories basically flat compared with the previous week. The decline in operating rates this week was mainly due to sluggish end-use demand. Affected by orders, alloy plants lacked upward momentum in operating rates, and there were cases of production control and cuts. In terms of end-use orders, consumption remained persistently in the doldrums. Meanwhile, enterprises are cautious about overall demand in August. Given the off-season, the market is expected to have difficulty showing bright performance. The operating rate of die-casting zinc alloy faces the risk of further decline. Next week, the industry operating rate is expected to edge down to fluctuate around 46%.