Zinc Oxide Operating Rates Remained Stable, While End-Use Demand Showed Divergence [SMM Zinc Oxide Weekly Review]

This week, the operating rate of zinc oxide came in at 55.50%, up slightly by 0.14 percentage points WoW. Inventory side, the center of zinc prices moved higher this week, and zinc oxide enterprises showed somewhat weaker purchase willingness, with the procurement pace turning more cautious; meanwhile, amid relatively large recent price fluctuations, some enterprises chose just-in-time procurement, and raw material inventory declined overall. As for finished product inventories, enterprises generally maintained a balance between production and sales this week, with little change WoW. On orders, overall demand for rubber-grade zinc oxide remained stable, but some enterprises held relatively cautious expectations for follow-up demand from tyre factories; orders for large ceramic-grade zinc oxide producers were relatively stable, but affected by the overall weakness in the real estate market, overall demand in the segment was mediocre; demand for feed-grade zinc oxide was generally normal; for electronic-grade zinc oxide, some enterprises reported that current demand was weaker than before the Lunar New Year, and the post-holiday market recovery pace was relatively slow. Looking at next week, the operating rate of zinc oxide is expected to fluctuate around 55.69%.