Zinc Oxide Production Relatively Stable but Enterprise Profit Margins Narrow [SMM Zinc Oxide Weekly Review]

Published: May 8, 2026 16:14

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[Zinc Oxide Operating Rates Relatively Stable but Enterprise Profit Margins Narrow] Currently, the overall demand in the zinc oxide industry was relatively stable, but market price involution was prominent. Meanwhile, some enterprises saw rising production costs due to production processes and increased raw material costs, while product selling prices were suppressed by market competition, leaving limited upside room...

The zinc oxide enterprise operating rate came in at 59.75% this week, up 0.68 percentage points WoW. Inventory side, post-holiday raw material prices remained elevated, suppressing zinc oxide enterprises' raw material purchase willingness, and enterprise raw material inventories pulled back somewhat; finished product inventories maintained a balanced production-sales pattern, basically flat with last week overall. Currently, overall demand in the zinc oxide industry is relatively stable, but market price involution is prominent; meanwhile, some enterprises saw rising production costs due to production processes and raw material cost increases, while product selling prices are constrained by market competition, leaving limited upside room. By end-user segment, feed-grade zinc oxide demand remained dragged down by the hog market, with weaker YoY performance; rubber-grade and ceramic-grade zinc oxide demand stayed stable, and electronic-grade zinc oxide market demand continued to show resilience. Looking ahead to next week, the zinc oxide enterprise operating rate is expected to fluctuate around 60.06%.

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.

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