Import expo, weaker tyre demand lower Oct operating rates at zinc oxide producers

SHANGHAI, Nov 15 (SMM) – Operating rates across Chinese producers of zinc oxide fell by 1.87 percentage points month on month to stand at 52.92% in October, down 4.98 percentage points compared to a year earlier, SMM data showed.

Producers operated for fewer days last month due to the National Day holiday.

Weakening demand deterred tyre producers, a major consumer of zinc oxide, from purchasing zinc oxide last month. This, together with high prices of raw materials and cash flow issues, generated losses at some small zinc oxide producers and drove them to cut output.

Producers in Shanghai and nearby regions saw less output last month due to the China International Import Expo.

Despite continued poor orders for tyres, the average operating rate across Chinese zinc oxide producers is expected to grow 1.92 percentage point to 54.84% in November without the impact from public holidays and after the end of the expo.