Large-scale plants maintained normal production during the week, and zinc oxide enterprise operating rates rose [SMM Zinc Oxide Weekly Review]

SMM September 12:

       This week, the operating rate for zinc oxide recorded 57.21%, up 2.72 percentage points WoW. Raw material side, zinc prices maintained a fluctuating trend during the week, with most zinc oxide enterprises making just-in-time procurement. Meanwhile, some raw materials were in relatively tight supply due to limited market availability, leading to higher procurement costs for enterprises. Raw material inventories saw a slight decline this week. Finished product inventories side, although some enterprises experienced improved transactions during the week, large factories basically maintained a production-sales balance, with overall inventories showing relatively small changes WoW. Orders side, demand from end-user tyre factories for rubber-grade zinc oxide remained generally weak, and semi-steel tyre enterprises still faced relatively high production and sales pressures. In the ceramic-grade zinc oxide sector, some enterprises saw a slight improvement in demand for high-end ceramic-grade zinc oxide; orders in other sectors showed no significant changes. The increase in the zinc oxide operating rate this week was mainly due to production resumptions from last week's enterprises operating normally this week, driving an increase in production. It is expected that with improved downstream consumption in some sectors, the zinc oxide operating rate will rise slightly to 57.93% next week.