SMM, May 9:
This week, the operating rate of zinc oxide was recorded at 59.77%, up 1.16% WoW. On the raw material side, zinc prices are currently maintaining a fluctuating trend. Zinc oxide enterprises primarily make just-in-time procurement of raw materials, leading to a decrease in raw material inventories. On the finished product side, enterprises with Labour Day holiday arrangements have been continuously depleting their finished product inventories, driving a reduction in finished product inventories. In terms of orders, tyre orders for rubber-grade zinc oxide have weakened recently, with some tyre factories holding higher inventories and showing decreased procurement enthusiasm. However, the demand for chemical products remains relatively normal. The demand for ceramic-grade zinc oxide has been relatively stable recently. For feed-grade zinc oxide, market demand has weakened due to the lower arrival of soybean meal at ports, higher prices for piglets, and lower prices for adult pigs. Regarding export orders, affected by the recent anti-dumping investigation and tariff disruptions initiated by the EU against China's tyres, the export prospects for end-use tyre orders are uncertain, and enterprises are cautious in their outlook. Currently, end-use demand in some sectors is relatively weak. It is expected that the operating rate of zinc oxide enterprises may reach around 59.50% next week.
