Fewer orders, environmental factor lower Aug operating rate at zinc oxide plants

SHANGHAI, Aug 31 (SMM) – Operating rates across domestic zinc oxide plants extended their decline in August, with fewer downstream orders and on environmental factors. 

The rate came in at 50.87% in August, down 0.5 percentage point from July and down 5.63 percentage points from a year ago, SMM research found. 

Orders from the tyre industry downstream weakened in the low season. Environmental probes drove some zinc oxide producers in Hebei, Jiangsu, and Zhejiang provinces to slow operations. 

The operating rate is likely to inch up 1.63 percentage points to 52.5% in September, SMM estimated based on orders received and production schedules across plants. 

Zinc oxide plants told SMM that their orders for September barely improved  despite expectations for the traditional high season in September. Some producers may also return from environmental restrictions in September, SMM learned.