Market Demand Showed Lackluster Performance, Zinc Oxide Operating Rates Declined [SMM Zinc Oxide Weekly Review]

The zinc oxide enterprise operating rate came in at 57.45% this week, down 0.76 percentage points WoW. On the inventory side, raw material inventories edged up during the week as some enterprises received raw material deliveries and bought the dip; finished product inventories also edged up slightly as some enterprises' shipment pace slowed down recently. The decline in zinc oxide operating rates this week was mainly due to the recent slowdown in end-use demand for zinc oxide enterprises, with zinc oxide enterprises adjusting their production pace accordingly. Currently, overall zinc oxide market consumption is under pressure. Traditional major downstream industries such as rubber, feed, and ceramics performed mediocrely. The continued downturn in real estate dragged down ceramics consumption, while the sluggish hog market also suppressed feed-grade demand, and tyre factory inventories remained elevated. The overall market lacked strong support; demand in high-end sectors such as electronics was relatively resilient but limited in volume. Looking ahead to next week, the zinc oxide operating rate is expected to continue to edge down, fluctuating around 57.26%.