Enterprises Resumed Production, Weekly Operating Rate of Die-Casting Zinc Alloy Rose [SMM Die-Casting Zinc Alloy Weekly Review]

The operating rate of die-casting zinc alloy was recorded at 53.41% this week, up 3.52 percentage points WoW. During the week, zinc prices overall hovered at highs, and die-casting zinc alloy enterprises had low purchase willingness, mostly consuming their existing inventories or picking up goods from earlier procurement sources, with raw material inventory declining. Meanwhile, the pace of procurement and cargo pick-up by end-user hardware factories slowed down this week, and die-casting zinc alloy enterprises saw fewer shipments. However, as some enterprises halted production during the week due to factory relocation, finished product inventories were basically flat WoW. The rise in operating rates this week was mainly driven by enterprises that were on holiday last week resuming production this week, pushing up operating rates. Order side, overall orders at large factories were relatively stable, with orders for daily hardware accessories performing relatively stable, and demand for electronic products such as AI products remained strong. Among export orders, orders destined for the Middle East continued to perform poorly due to geopolitical tensions. Looking ahead to next week, the operating rate of the die-casting zinc alloy industry is expected to continue fluctuating around 53.60%.