Zinc oxide enterprises have holiday arrangements, with a slight decline in production this week [SMM Zinc Oxide Weekly Review]

SMM News on May 30:

       This week, the operating rate of zinc oxide was recorded at 60.08%, down 1.96% WoW. On the raw material side, the center of zinc prices rose slightly this week. Zinc oxide enterprises made just-in-time procurement. Meanwhile, due to the recent shortage of some raw materials, it was relatively difficult for zinc oxide factories to procure raw materials, and raw material inventories decreased slightly WoW. In terms of finished product inventories, as a small number of zinc oxide enterprises had a 1-3 day holiday for the Dragon Boat Festival, enterprises' finished product inventories increased WoW. Regarding terminal order performance, the overall demand from large downstream tyre factories for rubber-grade zinc oxide was relatively stable. However, the demand from small and medium-sized tyre factories in North China has weakened recently. For feed-grade zinc oxide, due to the severe outbreak of African swine fever overseas, export orders improved slightly, with better-than-expected demand in off-season and an overall relatively stable situation. Orders for electronic-grade zinc oxide performed relatively normally, supported by power grid orders. This week, a small number of enterprises in the market had holiday arrangements, leading to a slight decline in the operating rate. Next week, as enterprises gradually resume production, the operating rate of zinc oxide is expected to rise to 60.72%.

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