SMM December 5 News:
The operating rate for die-casting zinc alloy this week was recorded at 51.08%, down 0.23 percentage points MoM. In terms of inventory, the price center of zinc rose significantly this week, dampening the purchasing enthusiasm of some enterprises. Meanwhile, spot premiums/discounts in east China were relatively high, further contributing to a decline in raw material inventory. Regarding finished product inventories, although the pace of warehouse withdrawals slowed during the week, some large enterprises had good withdrawals earlier, resulting in low finished product inventories, so finished product inventories only increased slightly. The slight decline in the operating rate of die-casting zinc alloy this week was mainly due to higher zinc prices weakening production at some enterprises. However, large enterprises currently have relatively stable orders overall, and with some enterprises resuming production during the week, the operating rate only saw a slight decrease. In terms of end-use orders, current demand from hardware end-users in the real estate sector was average, and enterprises reported weak orders for clothing buttons. However, demand for electronic product orders remained strong, with some enterprises reporting full order schedules and sustained market enthusiasm. Looking ahead to next week, enterprises that resumed production are expected to enter normal production, which will drive the operating rate of die-casting zinc alloy enterprises to rise slightly to around 51.55%.
