In recent months, reports of the closure of small and medium-sized enterprises in Zhejiang and Guangdong have gradually increased. Among them, there are many clothing and bathroom manufacturers, and these are just downstream areas of die-cast zinc alloys. Due to the reduction of terminal orders, the die-cast zinc alloy industry has been greatly affected. The production situation this year has been far worse than expected.

Although Zhejiang officials responded to reports of closures in writing in June, they believe that the development of SMEs in Zhejiang remains generally positive. However, the market psychology is still not optimistic. The recent argument that the large-scale collapse of SMEs this year is more dangerous than in 2008 is also accepted by more and more people.

For die-cast zinc alloy manufacturers, the pressure on companies this year is unprecedented. Whether it is cost or profit, whether internal or external, the product chain or the capital chain, especially the termination of the terminal manufacturing industry, or even the closure of the enterprise, the blow to die-casting companies is even more severe.

Inflation continues to push up raw material prices, and the production costs of companies continue to rise. However, it is difficult for products to raise prices and even face difficulties in sales. Since 2011, domestic and export sales of clothing and sanitary ware products were not very strong. With the termination of production or the closure of terminal companies, the downstream orders for zinc are even less optimistic, and die-casting processing is even less optimistic. Some companies stated that they no longer carry out die-casting operations and only keep raw material production.

The poor order is the most important reason for the limited development of the die-cast zinc alloy industry in 2011, especially in the period of high cost, companies prefer to stop production. In addition, the difficulty in obtaining loans and employment is even worse. The increase in corporate financial costs and manpower costs makes it harder to make profits. Recently, the turmoil in foreign economies has made export orders even more pessimistic. It is estimated that the die-cast zinc alloy industry will not perform well in 2011.