Zinc oxide companies slowly recover amid rising costs

SHANGHAI, Mar 23 (SMM) — Traded prices of zinc oxide stood at 20,500-21,200 yuan/mt last week. Production of zinc oxide enterprises last week has recovered from the prior week, but has not yet reached the normal production level of pre-CNY. Zinc prices continued to fluctuate last week, with prices higher in the first half of last week, but down in the second half of last week. The price of raw materials fluctuated greatly. Zinc oxide plants kept cautious about restocking goods and are unlikely to enter full-capacity operation. Auto tyre sector still have a small account of stocks. In February, passenger car sales declined 43.5% from the previous month. The number of orders for zinc oxide companies from auto tyre sector increased from the previous week, but the absolute amount was still small. The electronics and pharmaceutical industries placed orders normally last week, and consumption has basically recovered. The feed industry was still in the off-season. Production of zinc oxide enterprises last week has recovered from the prior week, but has not yet reached the normal production level of pre-CNY.