Zinc Oxide Operating Rates Rose, and End-Use Demand Gradually Picked Up [SMM Zinc Oxide Weekly Review]

       This week, the operating rate of zinc oxide came in at 44.22%, up 24.46 percentage points MoM. On the inventory side, as zinc oxide enterprises resumed production one after another, some enterprises showed stronger willingness to restock on dips, and raw material procurement increased somewhat; finished product inventories, supported by downstream production resumptions, saw a recovery in procurement demand and showed a destocking trend during the week. In terms of end-user orders, orders for rubber-grade and electronic-grade zinc oxide gradually recovered; ceramic-grade zinc oxide was mainly driven by rigid demand from long-established customers, with limited new orders. The rise in operating rates was mainly attributable to concentrated production resumptions among enterprises and the early completion of maintenance for some equipment. Although some enterprises implemented slight production cuts due to environmental protection factors, the impact on overall operating rates was limited. Looking ahead to next week, the operating rate of zinc oxide is expected to continue rising and fluctuate around 55.64%.