The center of zinc prices moved downward, and the operating rate of zinc oxide enterprises slightly increased [SMM Weekly Review of Zinc Oxide]

SMM News on July 18:

     This week, the operating rate of zinc oxide was recorded at 56.32%, up slightly by 0.47% MoM. On the raw material side, zinc prices declined at the beginning of the week, prompting zinc oxide enterprises to make small purchases. Meanwhile, the supply of some zinc oxide raw materials has slightly widened recently, leading to an increase in enterprises' raw material inventories MoM. On the finished product inventory side, the decline in zinc prices in the first half of the week drove an increase in shipments from some large zinc oxide enterprises, resulting in a decrease in finished product inventories MoM. Regarding terminal orders, the orders for rubber-grade zinc oxide from large enterprises operated normally this week, with orders improving slightly due to the lower prices in the first half of the week. However, orders from small and medium-sized enterprises remained weak. For ceramic-grade zinc oxide orders, the market demand for coarse porcelain was generally poor, while the market demand for fine porcelain remained relatively stable. For feed-grade zinc oxide orders, market demand gradually pulled back due to the seasonal off-season in consumption. Currently, the production and sales of auto parts have entered the seasonal off-season in consumption, with tyre factories' inventories still maintained at a relatively high level. The order demand across various sectors has also gradually pulled back. Affected by this, the operating rate of zinc oxide is expected to slightly decline to around 56.20% next week.