Factory Shutdown for Maintenance During the Week, Zinc Oxide Production Continues to Decline [SMM Zinc Oxide Weekly Review]

Published: Jan 3, 2025 15:30

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[Factory Shutdowns and Maintenance During the Week, Zinc Oxide Operating Rates Continued to Decline]: This week, the operating rate of zinc oxide was 53.62%, down 3.52% WoW. On the raw material side, most zinc oxide enterprises have not yet started pre-holiday stockpiling. Coupled with the sustained high zinc prices during the week, raw material inventory maintained a fluctuating trend under just-in-time procurement.

SMM, January 3: This week, the operating rate of zinc oxide was 53.62%, down 3.52% WoW. Raw material side, most zinc oxide enterprises have not yet started pre-holiday stockpiling. Coupled with the sustained high zinc prices during the week, raw material inventories maintained a fluctuating trend under just-in-time procurement. Finished product side, although some enterprises increased production for stockpiling, overall finished product inventories showed relatively small changes due to continuous shipments to downstream customers. Orders side, recent zinc oxide orders in the rubber and feed sectors remained relatively stable; entering the regular off-season, ceramic-grade orders declined significantly; electronic-grade zinc oxide orders continued to improve, supported by end-use demand. Operating side, some zinc oxide plants recently started early holidays due to poor orders or profits, leading to a significant drop in this week's operating rate. It is expected that the operating rate of zinc oxide will remain weak next week.

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