As environmental probes suspended production at some zinc alloy producers, the operating rate at zinc alloy die-casting plants across China dipped in June, we research found.
The rate came in at 48.64% in June, down 2.04 percentage points month on monthand down 10.66 percentage points year on year.
Inspectors from the central government settled in the south and the east at the start of June, to review the rectification works for previous issues. Reviews lasted a month and some zinc alloy producers stopped production.
Some die-casting plants, however, told us that they stepped up production in June as some consumers stockpiled on lower zinc prices in the second half of the month.
Producers that passed rectification checks would gradually resume production while consumption is likely to weaken in a seasonal lull.
We expects the operating rate to nudge up 0.88 percentage point to 49.52% in July. This would be 3.11 percentage points lower from the same period last year.