Driven by Both Production Resumption and Increase, Zinc Oxide Operating Rates Rise [SMM Zinc Oxide Weekly Review]

       The zinc oxide industry's operating rate recorded 58.66% this week, up 2.78 percentage points WoW. Inventory side, prices weakened during the week, and enterprise raw material inventories accumulated slightly. Meanwhile, finished product inventories also rose, mainly due to two factors: first, some enterprises planned relatively long maintenance periods and stockpiled in advance; second, enterprises that had delayed production due to the New Year's Day holiday and high prices resumed production this week, leading to a phased release of output. The operating rate increased this week, on one hand, because orders at leading large plants remained relatively stable, supporting the overall operating level; on the other hand, some enterprises slightly raised production to prepare for upcoming maintenance, and the resumption of production by previously delayed enterprises jointly contributed to the WoW rebound in the operating rate. Order side, orders for rubber-grade zinc oxide at large plants were generally stable, but some enterprises remained cautious about future demand; demand for feed-grade zinc oxide and electronic-grade zinc oxide changed relatively little; demand for ceramic-grade zinc oxide was relatively weak, affected by the gradual reduction or halt in production at end-user ceramic plants. Enterprises that resumed production mid-week this week are expected to operate normally next week, driving the operating rate of zinc oxide enterprises to continue a slight rise, fluctuating around 58.81%.