SHANGHAI, Jul 18 (SMM) – The average operating rate of die-casting zinc alloy manufacturers fell 10.6 percentage points to 46.72%. In terms of raw material inventory, most zinc alloy manufacturers had already finished the restocking amid previous price drops, hence the inventory declined last week as manufacturers purchased on rigid demand. In terms of operating rates, the market confidence was hit hard by likely rate hikes and extensive home foreclosure resulting from unfinished business of real estate. Terminal manufacturers of structural parts were bearish as the consumption still remained weak. Moreover, zinc alloy manufacturers were forced to suspend the production under the pressure of high inventory and shrinking orders. In addition, manufacturers in some areas had limited operating hours because the exceedingly high temperature forced them to reduce power and gas usage. In addition, as zinc alloy manufacturers had to cut the production due to high inventory of finished products, the average operating rate declined. At the same time, most manufacturers gave priority to consuming finished products stocks, which decreased last week. Since the inventory of finished products is running low, the manufacturers that had previously suspended the production may resume the production. Therefore, the operating rates of die-casting zinc alloy manufacturers may increase slightly.

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