SMM Analysis: Zinc oxide output hit by natural gas shortage

SHANGHAI, Dec 20 (SMM)－The operating rate of zinc oxide plants across China has dropped to an average of 53.8% in November, from 57.9% in October, according to SMM research.

Output in major zinc oxide producing provinces including Shandong, Hebei and Jiangsu have been limited due to short supply of natural gas. This followed the nationwide gas rationing measures in the winter season due to rising consumption and logistics difficulties.

Better auto sales toward the year-end have not helped much for the production of zinc oxide.

SMM expects the gas rationing measures will continue until January or February next year, and that the operating rate of zinc oxide plants is likely to fall to 53.3% in December.

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