Orders at zinc oxide plants were bearish as demand recovery rate slowed

SHANGHAI, Apr 27 (SMM) – Traded prices of zinc oxide stood at 20,400-21,100 yuan/mt last week. Operating rates at zinc oxide plants were 59.81%, down 7.06% from the previous week. Production at zinc oxide producers weakened sharply from the previous week. Zinc oxide companies continued to restock cargoes as zinc prices fell.

However, environmental inspections have not yet concluded. Production recovery progress at zinc oxide companies has been dragged down as some companies still cut and suspended production, coupled with maintenance. Finished product inventories rose in auto sector. Orders at major zinc oxide plants stabilised while small companies declined significantly on the back of weak demand.

Demand for zinc oxide from pharmaceutical sector was stable. Orders in the electronics industry rose amid the operation of national infrastructure projects. Orders at zinc oxide companies weakened sharply amid muted downstream demand.