This week, the zinc oxide operating rate was recorded at 55.33%, down 0.4 percentage points MoM. On the inventory side, with the National Day holiday approaching, zinc oxide enterprises engaged in modest pre-holiday stockpiling, leading to a rise in raw material inventory. The decline in the zinc oxide operating rate this week was mainly due to production suspensions and holidays at some enterprises during the Mid-Autumn Festival, which dragged down the overall operating level. Judging from recent end-user order conditions, overall market demand remained relatively subdued. For rubber-grade zinc oxide, tyre factories extended their National Day holiday schedules this year compared with previous years, while September auto dealer inventories rose both YoY and MoM, indirectly exerting some pressure on demand. Meanwhile, demand in other downstream sectors also showed no notable improvement recently. Although orders at some enterprises picked up somewhat, this was driven mainly by pre-holiday stockpiling demand from certain downstream segments, and sustainability remains to be seen. Looking ahead to next week, as some enterprises that suspended production for holidays this week are expected to resume normal output, the zinc oxide operating rate is expected to fluctuate around 55.66%, with limited room for rebound.
