End-use demand performance varied; zinc oxide operating rates edged up [SMM Zinc Oxide Weekly Review]

This week, the zinc oxide operating rate was recorded at 56.56%, up 0.94 percentage points WoW. Inventory-wise, the zinc price center pulled back somewhat this week, and enterprises showed increased enthusiasm in raw material procurement, driving raw material inventory to edge up. The rebound in zinc oxide enterprises' operating rate this week was mainly driven by improved orders in some end-use sectors recently, with enterprises accelerating their production pace. End-use demand side, supported by pre-holiday stockpiling and traditional peak-season demand, feed-grade zinc oxide demand improved from the earlier period; electronic-grade zinc oxide demand maintained certain resilience overall, supported by policy backstopping. Meanwhile, rubber prices stayed high recently, exerting some pressure on tire enterprises' operating rates, with related demand performing relatively mediocre. However, large zinc oxide enterprises have relatively stable client structures and limited impact, with overall operating rates remaining stable. Looking ahead to next week, zinc oxide enterprises' operating rate is expected to fluctuate around 57.18%.