End-Use Demand Weak, Zinc Oxide Operating Rate Continues to Decline [SMM Zinc Oxide Weekly Review]

Published: Jul 24, 2026 15:04

Save

[End-use demand weakens, zinc oxide operating rates continue to decline] Stepping into the traditional off-season, the purchasing strength from downstream tyre factories for rubber-grade zinc oxide is weak, with limited order releases. The supporting demand in the ceramics and electronics industries weakened synchronously. Demand in the feed sector has not improved, and transactions remain mediocre......

The operating rate of the zinc oxide industry recorded 54.53% this week, edging down 0.08 percentage points WoW. Inventory side, end-use demand was currently weak. Raw material procurement by zinc oxide enterprises basically maintained just-in-time demand, with inventories basically flat from last week. As some enterprises’ production pace slowed down recently along with some entering maintenance, finished product inventories edged down this week. End-use orders side, the market gradually entered the traditional off-season. Purchasing power of downstream tyre factories for rubber-grade zinc oxide was weak, with limited order release. Supporting demand from ceramics and electronics industries weakened simultaneously. Demand in the feed sector did not improve, and transactions remained mediocre. Looking ahead to next week, the zinc oxide operating rate is expected to continue to decline to fluctuate around 54.11%.

Data Source Statement: Except for publicly available information, all other data are processed by SMM based on publicly available information, market communication, and relying on SMM's internal database model. They are for reference only and do not constitute decision-making recommendations.

For any inquiries or for more information, please contact: lemonzhao@smm.cn

For more information on how to access our research reports, please contact:service.en@smm.cn

Related News

1 hour ago

Some Enterprises Restocked at the Beginning of the Month, Galvanizing Operating Rates Edged Up [SMM Galvanizing Weekly Review]

[Some Enterprises Restocked at the Beginning of the Month, Galvanizing Operating Rates Edged Up]: This week, the operating rate of the galvanizing industry was 52.62%, up 0.67 percentage points WoW. Raw material side, zinc prices stayed high this week; enterprises still mainly purchased to meet rigid demand, and raw material inventories were low overall.

1 hour ago

Zinc Prices Consolidate at Highs, Traders Dominate Trading [SMM Tianjin Spot Zinc Weekly Review]

[Zinc Prices Consolidate at Highs, Trading Dominated by Traders]: Spot premiums in Tianjin edged up by 10 yuan/mt WoW this week. As of this Friday, ordinary domestic brands were quoted at a discount of around 60-110 yuan/mt against the 2609 contract, high-grade brands at a premium of around 10-20 yuan/mt against the 2609 contract, and the Tianjin market was quoted at a discount of around 65 yuan/mt against Shanghai.

1 hour ago

Shanghai Zinc: Trading Market Continued to Hold Prices Firm, Overall Spot Zinc Transactions Showed No Improvement [SMM Midday Review]

[Shanghai Zinc: Trading Market Continued to Hold Prices Firm, Overall Spot Transactions Showed No Improvement] Today, mainstream transaction prices were mainly as follows: #0 zinc (25,570-25,740 yuan/mt), Shuangyan (25,700-25,870 yuan/mt), and #1 zinc (25,500-25,670 yuan/mt). In early trading, market quotes were at a premium of 50 yuan/mt against the SMM average price, while there were no quotes against the futures contract yet...

1 hour ago