Enterprises Affected by Parade, Production Declines Zinc Oxide Operations Drop This Week [SMM Zinc Oxide Weekly Review]

SMM August 22 News:

     This week, the operating rate of zinc oxide was recorded at 55.89%, down 1.06 percentage points WoW. On the raw material side, the center of zinc prices pulled back this week, and zinc oxide enterprises made small purchases, with raw material inventory increasing MoM; in terms of finished product inventories, shipments improved as zinc prices declined during the week, and outflows from warehouses were relatively smooth for some enterprises due to a slight improvement in demand, leading to a small decrease in inventory. Regarding end-user orders, the operating rate of semi-steel tires, which are the terminal for rubber-grade zinc oxide, was poor, although all-steel tires still provided support, the overall consumption in the tire market was sluggish, with significant inventory pressure on enterprises, who are cautious about future market consumption; the demand for ceramic-grade zinc oxide is in the off-season, showing average performance; the overall demand for feed-grade zinc oxide has recently recovered. Recently, production in some enterprises in North China decreased due to the military parade, causing the operating rate to decline this week, and some enterprises are also affected by high raw material prices and insufficient profit support. It is expected that next week, maintenance enterprises will still be unable to resume normal production, and the operating rate of zinc oxide enterprises is projected to hover around 55.58%.