
Recently, the domestic zinc die-casting alloy industry has entered its peak season, with production conditions showing improvement compared to the previous quarter. The operating rate has been steadily increasing, reaching 54.9% in April. However, many companies are adopting a just-in-time production model, where output is closely aligned with incoming orders, keeping finished goods inventory at a minimum.
According to reports, demand from various end-use sectors has shown mixed trends. Orders for daily necessities such as hardware and toys have stood out, while export orders for items like zipper heads and toys have surged due to seasonal demand, particularly linked to the construction and home decoration industries. Meanwhile, orders from the bathroom fixtures and lock manufacturing sectors remain relatively stable.
Despite a notable rise in domestic auto production and sales this year, the demand for zinc alloys used in automotive die-casting remains limited. As a result, overall zinc alloy demand continues to be constrained. Industry experts suggest that although the peak season brings some short-term benefits, the structural challenges in the market persist. Currently, the operating rate of domestic zinc die-casting alloys remains moderate and is expected to stay stable through June, with no major shifts anticipated in the near term.
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