Zinc Oxide Operation Rebounds Slightly, but End-Use Consumption Still Faces Hidden Concerns [SMM Zinc Oxide Weekly Review]

This week, the operating rate of zinc oxide recorded 54.93%, up 0.8 percentage points WoW. Inventory side, this week, the center of zinc prices rose, coupled with raw material coefficient consolidating at highs, enterprise raw material procurement cost pressure remained, and raw material inventory pulled back slightly. This week, the operating rate of zinc oxide rose, mainly because enterprises that had cut production earlier due to safety inspections resumed production this week, boosting the overall operating data higher. End-use consumption remained in the off-season, high-temperature weather affected downstream demand, demand across downstream sectors was generally weak, and the weak demand for feed-grade zinc oxide was more prominent. Looking ahead to next week, enterprises that have resumed production are expected to return to normal production, and the operating rate of zinc oxide enterprises is expected to continue rising, fluctuating around 55.22%.