Major Factory Orders Remain Relatively Firm, Die-Casting Zinc Alloy Operating Rate Pulls Back [SMM Die-Casting Zinc Alloy Weekly Review]

This week, the operating rate of die-casting zinc alloy was recorded at 45.77%, up 1.27 percentage points WoW. On the inventory side, rising zinc prices pushed up raw material procurement costs for die-casting zinc alloy enterprises, and combined with pressure on finished product shipments at some enterprises, raw material inventories pulled back this week while finished product inventories built up. The rise in die-casting zinc alloy operating rates this week was mainly driven by enterprises that had previously halted production due to weather disruptions resuming normal production; however, under the pressure of high zinc prices, the extent of the operating rate recovery fell short of earlier expectations, and some enterprises, dragged by high raw material prices and sluggish shipments, proactively slowed their production pace. In terms of end-use demand, traditional small hardware orders remained weak, significantly impacted by high prices; electronic product orders continued to show relatively firm performance. Looking ahead to next week, the operating rate of die-casting zinc alloy is expected to fluctuate around 45.70%.