SMM September 5 News:
The operating rate of die-casting zinc alloy recorded 51% this week, up 0.22 percentage points WoW. Raw material side, zinc prices rose continuously in the first half of the week, slowing the shipment pace of alloy enterprises and dampening their procurement enthusiasm. In the latter half, zinc prices declined, prompting increased purchases, though mostly through point pricing, resulting in only a slight increase in raw material procurement. Finished product inventories remained basically flat WoW due to weak sales in the first half. The marginal increase in operating rate was mainly driven by resumed production at furnaces that underwent maintenance earlier, leading to a slight output rise. Terminal orders remained relatively sluggish domestically, with mediocre demand for daily hardware like luggage zippers. Real estate-related hardware (e.g., furniture fittings, door locks, bathroom accessories), which accounts for a significant share, showed greater sensitivity to price fluctuations. Export orders saw only localized and minor improvements without broad-based recovery. Some enterprises will remain idled next week, with actual production adjustments depending on shipment performance. The operating rate is expected to hover around 50.53%.
