Large Plants Halt Production During the Week, Zinc Oxide Operating Rates Plunge Sharply [SMM Zinc Oxide Weekly Review]

       This week, the operating rate for zinc oxide was 50.37%, down 8.16 percentage points WoW. Inventory side, some enterprises have already halted production for holidays this week, and the number of enterprises taking holidays is expected to increase further next week. A few companies in the market made small restocks to avoid raw material procurement risks after the holiday, while most converted raw material inventories into finished products, leading to a decrease in raw material inventory and an increase in finished product inventories. From the perspective of end-user orders, large tire manufacturers in the rubber-grade zinc oxide sector are still operating, and enterprises report that end-user holidays last about one week, with demand relatively stable; demand for ceramic-grade zinc oxide and feed-grade zinc oxide is relatively weak. Currently, demand from large zinc oxide plants is relatively stable, while small and medium-sized enterprises, affected by weak orders and profit factors, have started holidays early. Additionally, some enterprises began annual routine maintenance of production equipment this week, resulting in a significant decline in the operating rate. Next week, the industry's operating rate is expected to continue decreasing, to around 37.87%.