According to SMM survey, the average operating rate of zinc oxide enterprises was 60.9% last week, down 0.6 percentage point from the previous week. In terms of raw material inventory, the recent sharp drop in zinc prices has driven some companies to replenish their inventory at low prices.
However, galvanising plants were reluctant to sell zinc slag, and zinc oxide companies were more cautious in purchasing raw materials. Therefore, raw material inventory did not grow significantly. In terms of orders, the sharp fluctuations in zinc prices led to a rise in risk aversion in the market, which had limited boost to overall orders.
As the recent tire orders have significantly weakened, the overall orders were sluggish. The maintenance of some enterprises has caused the operating rate to decline. It is expected that this week, as the enterprises resume production, the operating rates of zinc oxide enterprises may increase slightly.
