The average operating rate of zinc oxide enterprises was 62.1% last week, up 0.7 percentage point from the previous week. Zinc oxide plants restocked as required against strong zinc prices during the week. The environmental protection in the north continued, tightening zinc slag supply.
The zinc slag coefficient increased by nearly 2%. In this scenario, raw material inventories fell significantly. While recent operating rates at semi-steel tyre producers have remained at a high level, operating rates of all-steel tyre have been poor, lowering orders at zinc oxide plants. The desulfuriser sector has weakened significantly, and the feed sector has peaked then fell back. The overall performance was relatively poor. Some plants secured stable orders thanks to steady customer groups.
On the operating rate front, repeated environmental campaigns in the north had little impact on zinc oxide production as opposed to transportation, with operating rates returning to the levels before Mid-Autumn Festival and National Day holidays. this week, if the order performance is poor, the operating rates of zinc oxide plants may decrease.
