Major Manufacturers Increase Production and Stockpiling, Zinc Oxide Operating Rates Rise Significantly [SMM Zinc Oxide Weekly Review]

SMM reported on January 10: This week, the operating rate of zinc oxide was 65.03%, up 11.41% MoM. Raw material side, zinc prices declined steadily this week, prompting some downstream enterprises to start year-end purchases for inventory buildup, leading to an increase in raw material inventories. Finished product side, some enterprises completed inventory buildup and are about to take a holiday, resulting in a rise in finished product inventories. Orders side, recent inventory buildup orders from some tyre factories continued to flow out, with rubber-related orders performing well. During the year-end peak season for pork consumption, feed sector orders remained stable, while orders for electronic-grade zinc oxide also stayed strong, with related manufacturers maintaining good production conditions. Operating side, a major factory significantly increased its operating level in January due to a large number of inventory buildup orders, driving a notable rise in this week's zinc oxide operating rate. As the holiday approaches, some zinc oxide factories plan to lower furnace temperatures in advance, and the operating rate is expected to decline next week.

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