SHANGHAI, Oct 15 (SMM) – Improved downstream orders and the end of maintenance allowed operating rates across domestic zinc oxide plants to rebound in September.
The rate came in at 54.79% in September, up 3.92 percentage points from August but down 3.21 percentage points from a year ago, SMM research found.
Though demand weakened from a year ago, downstream orders improved from August in the traditional high season of September. Some zinc oxide plants completed maintenance as environmental checks ended, and this also pulled up the operating rate.
The operating rate is likely to extend its increase by 0.39 percentage point to 55.19% in October, SMM estimated based on orders received and production schedules across plants.
Most zinc oxide plants plan to take breaks between one to three days this month. Production will resume gradually in Henan province after local environmental probes, SMM learned.
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