Some Zinc Oxide Enterprises Considered Reducing or Suspending the Production amid the Sluggish Industry

SHANGHAI, Jun 27 (SMM) - 

According to SMM survey data, the average operating rate of zinc oxide stood at 55.5% last week, down 0.9% from the previous week.

The sharp fall in zinc prices boosted the restocking demand of enterprises last week. Most companies made certain purchases last week, driving up the raw material inventories.

In terms of orders, although the automobile sales were fair supported by policies, the inventory of car or tire companies was rather high amid the sluggish macro front, and the orders for zinc oxide were hardly boosted. Finished product inventory rose again amid the declining orders received by enterprises.

In general, some zinc oxide companies have stopped the production last week, mainly selling raw material inventories.

While the operating rates of other companies have been kept at a very low level. Some companies have also considered suspending or reducing the production again. The operating rates are unlikely to improve this week.