Die-Casting Zinc Alloy Operating Rate Declined This Week Due to Rainstorm and Typhoon Weather [SMM Die-Casting Zinc Alloy Weekly Review]

The die-casting zinc alloy operating rate came in at 41.48% this week, down 4.41 percentage points WoW. Inventory side, zinc prices consolidated at highs this week, and heavy rain and typhoon weather in east China caused enterprises' raw material inventories to decline this week while finished product inventories increased. The notable drop in the industry's operating rate this week was mainly because production at die-casting zinc alloy plants in east China was significantly affected by "Dolphin"; some Zhejiang enterprises suspended production from last weekend until mid-week, when they gradually resumed production, leading to a pronounced decline in the overall operating rate. End-use consumption side, consumption across all segments remained ordinary. End-use hardware factories in east China were affected by extreme weather, with order demand weakening somewhat. With zinc prices fluctuating at highs, the overall market was dominated by rigid demand orders, with limited incremental demand. Coupled with the current off-season for consumption, market transactions were relatively mediocre. Looking ahead to next week, as enterprises that have resumed production return to normal operations, the die-casting zinc alloy operating rate is expected to rise to and fluctuate around 44.62%.