End-use demand performed relatively average, and zinc oxide production slightly declined this week [SMM Zinc Oxide Weekly Review]

SMM News on July 25:

     This week, the operating rate of zinc oxide enterprises was recorded at 55.99%, down 0.33% MoM. On the raw material side, zinc prices rose significantly this week, and zinc oxide enterprises mainly made just-in-time procurement, leading to a MoM decrease in raw material inventory. Regarding finished product inventories, with the current end-use demand in the doldrums, the pace of destocking by zinc oxide enterprises slowed down, resulting in a MoM increase in finished product inventories. In terms of terminal orders, the current domestic tyre market demand is weak, and overseas markets are concerned about the subsequent impact of the EU's anti-dumping investigation. Therefore, export orders have performed slightly better than the domestic market. However, the overall performance of rubber-grade zinc oxide orders is average, and tyre factories may still face considerable inventory pressure in the future. Orders for ceramic-grade zinc oxide and feed-grade zinc oxide have seen an overall decline in demand due to the drag of end-use demand and the impact of the off-season. However, there is still uncertainty in overseas situations, as Brazil and the EU have also initiated anti-dumping investigations against China's tyres. The outlook for demand for rubber-grade zinc oxide orders remains unclear. Meanwhile, China is currently in a seasonal off-season for consumption, and it is expected that the operating rate of zinc oxide may hover around 55.28% next week.