The SMM survey showed that the operating rate of the original sample die-casting zinc alloy enterprises in October was 34.22%, a decrease of 2.69 percentage points from the previous month and a year-on-year decrease of 6.46 percentage points. In the new sample (note: the number of companies investigated in the new sample is 67, involving a production capacity of 1.6314 million tons), the operating rate in October was 51.22%, a decrease of 5.03% from the previous month.
The reasons for the large decline in the number of die-casting zinc alloy enterprises in October include: the impact of downstream power restrictions and production restrictions; overseas customers have already started production in March and April because of concerns about the long shipping cycle, and they have been shipped successively. Christmas orders are missing; zinc prices have risen sharply for a while, terminal companies have a strong wait-and-see sentiment, purchases have fallen sharply, and some alloy companies have chosen to reduce production or temporarily suspend production to cope with other factors.
Entering November, the price of zinc has fallen behind, terminal companies have a certain replenishment demand, and orders from alloy companies have been repaired to a certain extent. With the successive cancellation of electricity and production restrictions, enterprises resumed production, which also contributed to the increase in operating rates. It is expected that in November, the operating rate of die-cast zinc alloy samples of the original sample will increase by 4.03 percentage points from the previous month to 38.25%, which is 5.77 percentage points lower than the same period last year. The operating rate of the new samples of die-cast zinc alloy will drop 5.83% month-on-month to 57.05%.