Zinc Oxide Plants Gradually Resume Production, Operating Rates Expected to Exceed 40% Next Week [SMM Zinc Oxide Weekly Review]

Published: Feb 27, 2026 16:27

Save

[Zinc oxide plants resume production one after another, operations expected to exceed 40% next week] In the first week after the holiday, downstream industries such as terminal tires and ceramics are still in the stage of resuming work and production, with overall consumer demand remaining weak. Therefore, most zinc oxide enterprises in production have focused on gradually increasing output this week. The lower operating rate compared to pre-holiday levels is mainly due to some enterprises not yet restarting operations, while those that have resumed production have also failed to return to full normal production...

This week, the operating rate for zinc oxide recorded 19.76%, down 14.07 percentage points WoW compared to the last week before the holiday. Inventory side, after the holiday, upstream and downstream enterprises of zinc oxide gradually resumed production, with some manufacturers delivering pre-holiday downstream orders, leading to a reduction in finished product inventories; raw material side, enterprises mainly consumed pre-holiday stockpiling, coupled with logistics not fully restored, resulting in a slight decrease in raw material inventory. Order side, in the first week after the holiday, downstream industries such as terminal tires and ceramics were still in the stage of resuming work and production, with overall consumption demand remaining weak, so most operating zinc oxide enterprises during the week focused on gradually increasing production. The lower operating rate this week compared to pre-holiday was mainly due to some enterprises not yet restarting operations, while those that resumed production also failed to operate at full capacity. Looking ahead to next week, as downstream consumption is expected to gradually recover, the operating rate in the zinc oxide industry is projected to continue rising, rebounding to around 46.35%.

Data Source Statement: Except for publicly available information, all other data are processed by SMM based on publicly available information, market communication, and relying on SMM‘s internal database model. They are for reference only and do not constitute decision-making recommendations.

For any inquiries or to learn more information, please contact: lemonzhao@smm.cn

For more information on how to access our research reports, please contact:service.en@smm.cn

Related News

2 hours ago

An Early Look at the Resumption of Work at Galvanizing Enterprises in 2026! [SMM Analysis]

According to SMM research, most galvanising enterprises resumed production between the tenth day (February 26) and the sixteenth day (March 4) of the first lunar month. Small and medium-sized enterprises generally resumed operations after the Lantern Festival (March 2), with an average holiday duration of around 21 days.

2 hours ago

SMM Zn50 Weekly TC Rises as Domestic Mines Resume Post-Holiday Production

As of February 27, the SMM Zn50 domestic weekly TC average price rose by 50 yuan/mt in metal content from the pre-holiday level to 1,550 yuan/mt in metal content. According to SMM, as the Chinese New Year holiday ended, domestic mines gradually resumed production. Meanwhile, imported zinc concentrates previously ordered by smelters continued to arrive, leaving domestic smelters' raw material inventory relatively ample. Consequently, processing fees in some domestic regions increased for March.

2 hours ago

Heavy Rainfall Hits Australia, Disrupting Ore Transportation and Triggering Flood Warnings

It was reported that recently, large inland areas of South Australia, parts of the Northern Territory, Queensland, and New South Wales were hit by heavy rainfall. The Bureau of Meteorology warned that widespread storms would persist, flood warnings were issued for many areas, and freight traffic was disrupted in some regions. Affected by this, ore transportation in Australia was recently impacted to some extent, and the recovery time is currently unknown.

2 hours ago