Some enterprises resumed normal production, and the zinc oxide operating rate increased this week. [SMM Zinc Oxide Weekly Review]

SMM October 31:

       This week, the operating rate for zinc oxide recorded 58.19%, up 1.83 percentage points WoW. Inventory side, zinc prices rose WoW, with most enterprises mainly making just-in-time procurement, leading to a WoW decrease in raw material inventory. Finished product inventories side, the pace of warehouse withdrawals for zinc oxide enterprises slowed down during the week, resulting in a relatively significant WoW increase in finished product inventories. Terminal orders side, among various segments, demand for electronic-grade zinc oxide orders remained relatively strong, with demand for lightning arrester valve sheets providing strong support for this segment. Rubber-grade zinc oxide and feed-grade zinc oxide orders performed relatively normally during the week, but demand for ceramic-grade zinc oxide remained overall mediocre. Meanwhile, affected by subsequent production cuts and shutdowns at terminal ceramic plants, future demand faces some risk of slowdown. Additionally, some raw material prices in the current zinc oxide market are relatively high, leading to higher procurement costs for enterprises and compressed profits. The increase in the zinc oxide operating rate this week was mainly due to some zinc oxide enterprises resuming normal production, driving an increase in production. Looking ahead to next week, enterprises that recently had maintenance issues are expected to resume normal production, and the zinc oxide operating rate is projected to rise further to 58.37%.