Operating rates of die-casting zinc alloy producers rise notably on production resumptions and low prices [SMM weekly review on die-casting zinc alloy]

This week, the operating rate of die-casting zinc alloy enterprises recorded 47.78%, up 11.22 percentage points WoW. Inventory-wise, the zinc price center continued to pull back this week, and alloy plants' shipments improved, driving destocking of finished products at alloy plants, while raw material purchases increased. The notable rise in die-casting zinc alloy operating rates this week was mainly driven by enterprises that had suspended production during the National Day holiday last week resuming normal production, boosting output. End-use demand side, orders across various end-user sectors for die-casting zinc alloy recovered, supported by lower prices, such as hardware and sanitary ware in the construction sector and daily-use small hardware like luggage zippers. However, current demand is mostly driven by post-holiday restocking by end-user enterprises and lower prices. Looking ahead to next week, the operating rate of die-casting zinc alloy enterprises is expected to fluctuate around 47.9%.