Production Resumptions at Enterprises Coupled with Improved Orders from Large Plants, Zinc Oxide Plant Operating Rates Rose This Week [SMM Zinc Oxide Weekly Review]

       This week, the operating rate for zinc oxide recorded 58.51%, up 1.47 percentage points WoW. Raw material side, zinc prices rose during the week, coupled with high coefficients for some raw materials, leading to a slight decrease in raw material inventories for zinc oxide enterprises. Finished product inventories side, driven by improved shipments from some enterprises, finished product inventories also saw a slight decrease this week. In terms of end-user orders, orders for large enterprises remained relatively stable currently, with some companies reporting good recent order demand, while demand from small and medium-sized enterprises was relatively average by comparison. However, some enterprises in the market are currently affected by high raw material costs, facing significant pressure on raw material procurement, yet find it difficult to raise product prices. The increase in operating rates this week was partly due to improved production from enterprises with better orders recently, and partly because some enterprises that had previously suspended production due to environmental protection reasons resumed normal operation, driving production higher. Looking ahead to next week, zinc oxide enterprises have almost no New Year holiday arrangements, and some hold cautiously optimistic views on subsequent consumption. The operating rate for zinc oxide is expected to fluctuate around 58.92%.