Stable Orders From Major Manufacturers Continued to Drive Up Zinc Oxide Operating Rates [SMM Zinc Oxide Weekly Review]

       This week, the operating rate of zinc oxide recorded 55.36%, up 2.63 percentage points WoW. Inventory side, the center of zinc prices moved lower during the week, driving some enterprises to increase zinc ingot purchases. As a result, raw material inventory of zinc oxide increased somewhat this week. Meanwhile, the faster shipments pace of some large plants recently also led to a decline in finished product inventory during the week. Orders side, by enterprise type, orders at top-tier enterprises remained generally normal, with a relatively fast shipments pace, while demand at small and medium-sized enterprises was relatively average. This week, the decline in zinc prices led to more downstream inquiries from end-users across zinc oxide segments, but due to a certain lag in product pricing, purchases by end-user enterprises were mostly for rigid demand. Looking ahead to next week, as temperatures gradually rebound and demand improves, the operating rate of zinc oxide is expected to rise and fluctuate around 56.20%.