Affected by the delayed start of the holiday, the operating rate of zinc oxide declined [SMM Zinc Oxide Weekly Review]

SMM Oct. 10:

       This week, the operating rate for zinc oxide was 56.08%, down 1.24 percentage points WoW. In terms of inventory, affected by high raw material prices and some holiday-taking enterprises converting all raw materials into finished products, zinc oxide raw material inventory decreased this week, while finished product inventories increased. The decline in the zinc oxide operating rate this week was mainly due to some large plants being on holiday for most of the mid-week period, coupled with some enterprises with holiday arrangements postponing the start of their holidays to the Mid-Autumn Festival, which led to an overall decrease in production this week and lower enterprise operating rates. In terms of orders, orders for large plants remained relatively stable, and some end-users with holiday arrangements also engaged in some restocking after returning from the holiday. Demand for rubber-grade zinc oxide is currently relatively normal, while demand for feed-grade and electronic-grade zinc oxide is relatively strong. In addition, according to enterprise feedback, demand in the desulfurization market remains relatively weak. Looking ahead to next week, as some previously holiday-taking zinc oxide enterprises resume normal production, the operating rate is expected to rise to around 57.21%.