Price: Secondary Zinc Oxide prices remained caught between gains and losses in August. On the one hand, steel mill demand remained weak, and declining steel production reduced the output of steel ash and other raw materials, keeping supply relatively tight and procurement costs elevated. This provided strong cost support for Secondary Zinc Oxide prices. On the other hand, downstream demand remained moderate, with buyers showing limited acceptance of high-priced Secondary Zinc Oxide and mainly purchasing on a need-to-have basis. As a result, producers faced difficulties in passing higher costs through to downstream customers. Amid the dual pressure of elevated raw material costs and weak downstream acceptance, market prices remained high, but lacked sufficient demand support for further gains, while strong cost support also limited the downside.

September Outlook: Steel mill demand is expected to see only limited improvement in the short term, with little room for a significant recovery in steel production. The tight supply of steel ash and other raw materials is therefore expected to persist, providing continued cost support for Secondary Zinc Oxide prices. However, downstream buyers have limited ability to accept high-priced raw materials, which will continue to constrain upside potential. Overall, Secondary Zinc Oxide prices are unlikely to see significant gains in September due to insufficient demand support, while downside risks are also limited by high raw material costs. Prices are expected to remain at elevated levels, with limited room for a meaningful decline in the price center.