According to SMM survey, the average operating rate of zinc oxide enterprises was 62.4% last week, down 0.3 percentage point from a week earlier. Zinc oxide companies replenished their stocks at low prices for the nearing National Day holidays.
The inventory of raw materials increased significantly. Orders were mixed. The recent strong operating rates of tyre plants and the pre-holiday purchases led to high operating rates at large-scale tyre-grade zinc oxide plants. But some downstream companies were cautious in purchasing against high zinc prices. The performance of ceramics, electronics and other sectors was still relatively weak. The Asian Games in Hangzhou did not impact zinc oxide plants, as the restrictions were imposed mainly on transportation. Operating rates will remain at the current level this week.
