Consumption in some sectors is gradually weakening, and the operating rate of zinc oxide is declining [SMM Weekly Review of Zinc Oxide]

SMM June 6 News:

      This week, the operating rate of zinc oxide enterprises was recorded at 59.50%, down 0.57% WoW. On the raw material side, zinc prices maintained a fluctuating trend during the week. Although some raw material prices dropped back slightly recently, enterprises still focused on just-in-time procurement, and the changes in raw material inventories were relatively small. In terms of finished product inventories, the demand for some end-use orders slowed down recently, and the speed of downstream cargo pick-up decreased, leading to a slight increase in finished product inventories of zinc oxide enterprises. Regarding the performance of end-use orders, orders for rubber-grade zinc oxide's terminal chemical products have been in the doldrums recently due to the impact of temperature. Meanwhile, in terms of tire orders, the performance of orders exported to the Americas and the Middle East remained poor, while export orders in other regions were relatively normal. The overall performance of orders for ceramic-grade zinc oxide and feed-grade zinc oxide still showed no significant changes. Although some enterprises resumed normal production this week, the overall production still declined due to the impact of environmental protection checks and the weakening of end-use demand in zinc oxide plants recently. It is expected that environmental protection checks will still affect some enterprises next week, and the operating rate of zinc oxide enterprises may drop to 59.24%.

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