Suspended Zinc Oxide Plants Resumed Production, Operating Rates Rose This Week [SMM Zinc Oxide Weekly Review]

SMM September 5 news:

       This week, the operating rate of zinc oxide reached 54.50%, up 2.81 percentage points MoM. Raw material side, enterprise inventories increased this week. Recently, the zinc slag payable indicator rose, leading some firms to face higher procurement costs, which prompted increased purchases of crude zinc and zinc ingots. Other enterprises also raised raw material procurement volumes according to their own plans. Finished product inventories declined as shipments improved for some manufacturers. Order side, rubber-grade zinc oxide orders in east China showed slight recovery, with tyre factories accelerating procurement slightly. Feed-grade and electronic-grade zinc oxide orders maintained overall stable demand, while ceramic-grade zinc oxide remained weak due to persistent sluggishness in the terminal real estate market. This week's operating rate increase primarily resulted from production resumptions at previously idled plants. Next week, as resuming operations gradually normalize, the zinc oxide industry's operating rate is expected to further rise to around 57.75%.