End of maintenance buoys Sep operating rate at zinc oxide plants

Published: Oct 15, 2018 10:56
The rate came in at 54.79% in Sep, up 3.92 percentage points from Aug but down 3.21 percentage points from a year ago

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. 

Data Source Statement: Except for publicly available information, all other data are processed by SMM based on publicly available information, market communication, and relying on SMM's internal database model. They are for reference only and do not constitute decision-making recommendations.

For any inquiries or for more information, please contact: lemonzhao@smm.cn
For more information on how to access our research reports, please contact:service.en@smm.cn
Related News
SHFE Zinc Prices Drop, Boosting Downstream Buyer Activity in East China
3 hours ago
SHFE Zinc Prices Drop, Boosting Downstream Buyer Activity in East China
Read More
SHFE Zinc Prices Drop, Boosting Downstream Buyer Activity in East China
SHFE Zinc Prices Drop, Boosting Downstream Buyer Activity in East China
[East China Zinc Ingot Market] According to SMM, SHFE zinc prices have recently declined significantly to around RMB 26,000/mt, reaching the psychological price levels of most downstream buyers. Since last night, downstream buyers have become more active in securing cargoes through price fixing, leading to a noticeable improvement in spot market activity in East China. Traders have also raised their offers accordingly. Today, SMM 0# zinc ingot prices fell by RMB 290/mt day-on-day to RMB 26,030/mt.
3 hours ago
US dollar index strength pressures base metals, LME zinc extends decline [SMM Zinc Morning Meeting Summary]
5 hours ago
US dollar index strength pressures base metals, LME zinc extends decline [SMM Zinc Morning Meeting Summary]
Read More
US dollar index strength pressures base metals, LME zinc extends decline [SMM Zinc Morning Meeting Summary]
US dollar index strength pressures base metals, LME zinc extends decline [SMM Zinc Morning Meeting Summary]
[SMM Zinc Morning Meeting Summary: Stronger US Dollar Index Pressures Base Metals, LME Zinc Extends Decline]: Overnight, LME zinc opened at $3,867/mt, touched a high of $3,873.5/mt at the start of trading, then drifted lower throughout the session, hit a low of $3,766.5/mt near the end of trading, before rebounding slightly at the close to settle down at $3,804.5/mt, down $59/mt...
5 hours ago
SHFE zinc opened lower in the night session, expected to consolidate in the short term [SMM zinc morning comment]
5 hours ago
SHFE zinc opened lower in the night session, expected to consolidate in the short term [SMM zinc morning comment]
Read More
SHFE zinc opened lower in the night session, expected to consolidate in the short term [SMM zinc morning comment]
SHFE zinc opened lower in the night session, expected to consolidate in the short term [SMM zinc morning comment]
[SMM Zinc Morning Comment: SHFE Zinc Opens Lower in Night Session, Expected to Consolidate in the Short Term] Overnight, the most-traded SHFE zinc 2611 contract opened at 25,960 yuan/mt. After the open, SHFE zinc drifted higher, hitting a low of 25,960 yuan/mt in early trading and a high of 26,250 yuan/mt near the close, before settling down at 26,210 yuan/mt, down 125 yuan/mt or 0.47%. Trading volume decreased to 52,752 lots, and open interest fell by 1,481 lots to 126,000 lots.
5 hours ago