As Q3 2026 reaches the halfway mark, how has recent consumption of die-cast zinc alloys performed? What are companies’ expectations for demand going forward?

[With Q3 2026 More Than Half Over, How Are Die-Casting Zinc Alloy and Zinc Oxide Consumption Performing?] In the blink of an eye, more than half of Q3 2026 has already passed. How has recent consumption of die-casting zinc alloy and zinc oxide been performing, and what are enterprises' expectations for the period ahead?

As of July 31, the SHFE zinc front-month contract settled at RMB 24,800/mt, up RMB 190/mt month-on-month, a gain of 0.77%. Zinc prices traded at elevated levels throughout July, dipping to a monthly low of RMB 24,070/mt in early July before peaking at RMB 25,035/mt toward month-end, with prices holding broadly firm at the high end of the range.

[Zinc Ingot Export Window Remained Open; Where Will Zinc Prices Head in August?] In August, zinc concentrate TCs continued to decline MoM. SMM’s domestic zinc concentrate TCs fell to -1,550 yuan/mt Zn, once again setting a new record low. However, supported by profits from by-products such as sulphuric acid and metal-rich materials, coupled with the gradual resumption of production at some smelters following earlier maintenance, SMM expected refined zinc production to increase MoM in August.....

【Current Operating Status and Future Outlook of China's Crude Zinc Market Under Dual Supply-Demand Pressure】Since 2026, the domestic crude zinc market has exhibited operating characteristics of concurrent supply-side contraction and demand-side structural divergence. Affected by the combined impact of tightening raw material supply ......

[Die-Casting Zinc Alloy Operating Rate Down This Week on Rainstorms and Typhoons] The die-casting zinc alloy operating rate came in at 41.48% this week, down 4.41 percentage points WoW. Inventory side, this week's consolidation of zinc prices at highs, coupled with rainstorms and typhoons in east China, caused enterprises' raw material inventories to decline this week and finished product inventories to increase......

According to market sources, typhoon conditions restricted pick-ups at some warehouses and terminals in East China today, while the availability of spot material and the number of active sellers remained relatively limited. Meanwhile, some zinc alloy producers in parts of Zhejiang suspended operations due to the typhoon, resulting in weaker downstream purchasing demand. Trading activity on both the supply and demand sides was affected to some extent, and overall spot trading in the East China zinc ingot market remained subdued today. SMM will continue to monitor the impact of the typhoon on subsequent material pick-ups and downstream production.

[Market demand was sluggish, die-casting zinc alloy operating rate continued to decline] This week, the decline in operating rates was mainly due to poor end-use demand. Affected by orders, the operating rate of alloy plants lacked upward momentum, and there were production controls and production cuts. In terms of end-use orders, consumption remained in the doldrums. Meanwhile, enterprises held a cautious view on overall demand in August...

[More Frequent Production Control and Cuts Among Enterprises; Die-casting Zinc Alloy Operating Rates Decline] The decline in operating rates was mainly due to weakening end-use demand, with sluggish shipments at alloy plants leading to production control and cuts. Demand side, end-use consumption was in the traditional off-season, with orders across downstream sectors generally weak...

【SMM Flash】SMM surveys show the operating rate of die-casting zinc alloys this week stood at 46.59%, down 2.38 percentage points week-on-week. The decline in operating rates mainly stems from weaker end-user demand. Alloy producers faced sluggish shipments and therefore implemented production controls and cuts.