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[concern] after vicious competition and another epidemic situation, will the zinc oxide industry clear the clouds and see the blue sky soon?
Sep 25,2020 07:13CST
The content below was translated by Tencent automatically for reference.

SMM9 March 24: zinc oxide is an inorganic substance, and the chemical formula is ZnO, an oxide of zinc; it is insoluble in water and soluble in acids and strong bases, accounting for 4.86% of China's primary zinc consumption. Zinc oxide is widely used in key applications that require high purity zinc oxide, such as rubber tires, electronics (soft magnetic and varistor), chemical (desulfurizer), plastics, glass and ceramics, paints and coatings (white pigments). Zinc oxide is also an important part of zinc consumption.

The zinc oxide industry, which has experienced strict inspection of environmental protection, new requirements of the new national standard, and vicious competition in a price war caused by overcapacity, has just breathed a sigh of relief and ushered in new challenges. An epidemic has disrupted a pool of spring water, domestic demand has been hampered and exports have been hindered, making it more and more difficult for physical enterprises to operate.

According to SMM research data, in February 2020, the operating rate of domestic zinc oxide enterprises plummeted to 24.46%, the lowest since SMM began to record. However, as the domestic epidemic situation was brought under control, the zinc oxide operation rate gradually rebounded after February, and the start-up rate in August was 49.08%.

"Click to view the SMM zinc industry chain database

As the terminal with the largest proportion of zinc oxide, tire is closely related to the automobile industry. According to the China Automobile Association, auto production and sales completed 2.119 million and 2.186 million respectively in August, with sales up 3.5 per cent month-on-month and 6.3 per cent and 11.6 per cent respectively compared with the same period last year. As of August, automobile production and sales have increased for five consecutive months, of which sales have maintained a growth rate of more than 10 percent for four consecutive months. The gradual recovery of the automobile industry drives the demand of the tire plate to a certain extent, and there is still room for further development of the tire plate. Superimposed overseas economic restart, export orders will continue to support zinc oxide consumption.

At present, the performance of feed orders is stable, the risk of classical swine fever in China has not been completely lifted, and many large enterprises have strengthened the layout of the pig breeding sector, but they have not yet produced economies of scale, and it is expected that the bright spot of consumption will be in the later stage.

Prospect of Zinc oxide Industry

Under the influence of the epidemic, the world has released a lot of water, and the economy has been saved? Low interest rates and inflation, consumption enthusiasm really increased? In this context, where will the zinc oxide industry go? What is the development status and trend of zinc oxide industry in China? In addition, environmental protection has been paid more and more attention by the state. Last year, the zinc oxide industry experienced strict environmental protection inspection. What is the impact of regional environmental protection policies on the development of the zinc industry? How will the implementation of the new solid waste law this year change the development of the industry? Wait.

In view of the many issues concerned by the current industry, Shanghai Nonferrous Network (SMM) will hold the 2020 China Zinc Salt Summit Forum and the 2020 (eighth) Zinc oxide Industry chain Trading Summit in Nanjing, Jiangsu Province on November 5-6, 2020. At the meeting, there will be industry experts, corporate celebrities and senior analysts to make a comprehensive interpretation for you on the spot.

Understand the past, master the present, predict the future, and learn to be advanced!

A brainstorm is coming, focusing on supply and demand, policy, cost and other aspects of thinking collision, will provide new ideas and coping strategies for the zinc oxide industry!

SMM zinc oxide industry chain trading summit provides you with professional platform and resources to add power for your enterprise development! Welcome your participation!

Operating rate
zinc oxide

For queries, please contact Frank LIU at liuxiaolei@smm.cn

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