SMM Oct. 17:
The operating rate for die-casting zinc alloy recorded 54.63% this week, up 8.13 percentage points WoW. Raw material side, zinc prices pulled back this week, and improved end-use demand boosted withdrawals from warehouses for some die-casting zinc alloy enterprises, prompting them to increase raw material purchases, resulting in a WoW increase in raw material inventories. Finished product inventories side, end-use demand recovered driven by low prices, leading to a WoW decrease in finished product inventories for enterprises. The significant increase in the operating rate for die-casting zinc alloy this week was mainly due to two reasons: first, enterprises that resumed production last week have fully returned to normal production this week; second, some enterprises slightly increased production recently due to improved end-use demand. Terminal orders side, stimulated by low prices during the week, orders across various segments improved for some enterprises, such as hardware and bathroom fixtures, automotive parts, and luggage zippers, but uncertainty remains regarding the sustainability of subsequent orders. Currently, alloy plants in south China and east China are significantly impacted by low-priced alloys in the market, with the contradiction being relatively more prominent in south China. Looking ahead to next week, if the sales pace of some enterprises falls short of expectations, leading to inventory buildup next week, the operating rate for die-casting zinc alloy is expected to slightly decline and hover around 54.32%.
