Affected by equipment maintenance in enterprises, the operating rate of zinc oxide has declined [SMM Zinc Oxide Weekly Review]

SMM May 23 News:

       This week, the zinc oxide operating rate was recorded at 62.03%, down 0.38% WoW. The decline in the operating rate was mainly due to the shutdown of some enterprises for equipment maintenance during the week. On the raw material side, zinc prices maintained a fluctuating trend this week, with some enterprises purchasing small quantities at low prices, leading to a slight increase in inventory. On the finished product side, enterprises currently maintained a balance between production and sales, with finished product inventories basically flat compared to last week. In terms of orders, the overall demand for rubber-grade zinc oxide was relatively normal this week. Although the EU launched an anti-dumping investigation into China's tire products during the week, the actual impact still requires time to materialize. For ceramic-grade zinc oxide, orders from major manufacturers remained relatively stable, with market demand being relatively stable. The overall demand for feed-grade zinc oxide was also relatively normal. However, as the weather gradually warms up, enterprises believe that the subsequent demand for feed-grade zinc oxide will drop back slightly. Regarding export orders, although the recent EU anti-dumping investigations have been affecting the market, the actual impact on domestic enterprises still requires time to materialize. Next week, enterprises undergoing equipment maintenance are expected to remain unable to resume normal production. Meanwhile, with the rise in temperature, downstream demand in some sectors may drop back slightly, and the zinc oxide operating rate is expected to be recorded at 61.80%.

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