Safety inspections in some regions led to lower operating rates of zinc oxide this week [SMM Zinc Oxide Weekly Review]

This week, the operating rate of zinc oxide was recorded at 54.12%, down 1.43 percentage points WoW. On the inventory side, lower zinc prices prompted enterprises to restock at bargain prices, boosting raw material inventories. However, destocking of finished product inventories remained limited due to lackluster end-use demand. The decline in the zinc oxide operating rate this week was mainly due to safety inspections at some enterprises during the week, which weighed on operations. In terms of end-use demand, downstream demand was subdued. Large factories saw relatively stable overall orders, but remained cautious about demand going forward. By segment, orders for feed-grade zinc oxide continued to be weak. End-use demand for rubber-grade and ceramic-grade zinc oxide was ordinary, while orders for electronic-grade zinc oxide remained supported by orders from the power grid. Looking ahead to next week, affected by the demand off-season, the operating rate of zinc oxide enterprises is expected to edge down further to around 54.01%.