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[SMM analysis] Zinc oxide started to resume further in May, but the year-on-year decline is still significant.
May 22,2020 18:13CST
translation
Source:SMM
The content below was translated by Tencent automatically for reference.

SMM5 March 22:

According to the (SMM) survey of Shanghai Nonferrous Network, the operating rate of zinc oxide enterprises further rebounded in April, and after the domestic epidemic situation was fully brought under control, all aspects of economic activities recovered in an orderly manner. According to SMM research, most zinc oxide enterprises returned to normal production in April, but due to the continuous fermentation of overseas epidemic situation, the operating rate of export-oriented zinc oxide enterprises of some end customers is at a low level, and it will take time to recover.

From a sub-plate point of view, the performance of the feed industry is still eye-catching, and the advantage of the "pig cycle" has not faded, but with the continuous recovery of pig production capacity, the pig production rate has increased significantly in the past two months, pig prices have been falling, and terminal breeding enthusiasm has faded somewhat. Superimposed off-season attacks, the feed industry shows a downward trend, but with more large enterprises to join the pig industry, there is still tension in this sector. And tire plate, on the one hand, tire enterprises are still building inventory; On the other hand, after the introduction of various consumption stimulus policies in China, automobile production and sales showed positive growth compared with the same period last year, coupled with an increase in the proportion of private car travel under the influence of the epidemic, driving the freezing point of sales of the tire industry, and later, with the resumption of the economy in Europe and the United States, automobile production is also expected to resume. Some enterprises have reported that some foreign trade orders can already leave the port, and it is expected that the impact of foreign trade in the tire industry is expected to be lifted slowly. But it may be difficult to achieve positive growth during the year. The paint ceramic plate remains relatively stable, as the current expectations for the completion of real estate this year are relatively high, it is expected that this plate will remain relatively stable. Other sectors, such as chemical industry, medicine, electronics and so on, have relatively stable feedback at present.

On the whole, the zinc oxide industry has a certain degree of resilience, and it is expected that there is still room for recovery in May. According to the enterprise's production scheduling plan, the zinc oxide operating rate is expected to further rise to 42.95% in May, but 11.96 percentage points lower than the same period last year. Zinc oxide seasonal change is not obvious, is expected to be stable in the later period.

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