Zinc oxide production stabilised

SHANGHAI, Jun 2 (SMM) – Traded prices of zinc oxide stood at 21,100-22,200 yuan/mt last week. According to SMM survey, operating rates at zinc oxide enterprises were 65.17% last week, a decrease of 1.35% from the previous week. At the beginning of last week, the state strengthened macro-control efforts to restrain the unreasonable rise in commodity prices, and the price of zinc fell. The production enthusiasm of enterprises has increased significantly. However, zinc prices returned to a high level due in the second half of last week. However, production was modest as producers have restocked raw materials. However, some enterprises in Shandong and central China have continued their maintenance.

Auto orders in some regions of north China continued to weaken, and production continued to be restricted; ceramic and chemical output gradually increased, but they accounted for a relatively small proportion of the overall output of zinc oxide; the feed industry was still in the low season, and output has also weakened. Operating rates at zinc oxide enterprises decreased slightly. However, their orders are expected to increase as macro-control has restrained the increase in zinc prices, and downstream consumption has begun to recover, but it still takes time to gradually increase the release.