SMM

The Central Economic Work Conference was held in Beijing from December 11 to December 12, where it was emphasized that a more proactive fiscal policy should be implemented to comprehensively expand domestic demand. Regarding the real estate sector, the conference set the tone for the 2025 market, proposing sustained efforts to stabilize the real estate market and fully unleash the potential of rigid and improved housing demand.

In the downstream consumption of die-casting zinc alloy, a significant portion of demand is concentrated in real estate-related fields, such as furniture accessories and hardware sanitary products. According to SMM, a large number of die-casting zinc alloy enterprises engaged in real estate-related products are located in South China, particularly in the Pearl River Delta region. SMM data shows that the operating rate of die-casting zinc alloy in South China has been below the national average for three consecutive months since August, reflecting the weaker performance of the real estate sector in South China.

From China's real estate completion data, as of the end of October, the cumulative YoY decline in completed real estate area was 23.9%. Meanwhile, real estate sales area also showed a cumulative YoY decline of 15.8% as of the end of October. Overall, real estate data for the year indicates a significant YoY downturn.

Currently, China's real estate market is indeed in a sluggish phase, and the stabilization measures proposed at this conference precisely reflect this reality. Specifically, in the die-casting zinc alloy industry, the operating rate in South China has shown a downward trend since 2021. However, if more favorable macro policies are introduced, such as this year's home appliance trade-in policy, the die-casting zinc alloy industry may see a slight recovery in the future. SMM will continue to closely monitor developments in the real estate market.