End-Use Demand Weak, Zinc Oxide Operating Rate Continues to Decline [SMM Zinc Oxide Weekly Review]

The operating rate of the zinc oxide industry recorded 54.53% this week, edging down 0.08 percentage points WoW. Inventory side, end-use demand was currently weak. Raw material procurement by zinc oxide enterprises basically maintained just-in-time demand, with inventories basically flat from last week. As some enterprises’ production pace slowed down recently along with some entering maintenance, finished product inventories edged down this week. End-use orders side, the market gradually entered the traditional off-season. Purchasing power of downstream tyre factories for rubber-grade zinc oxide was weak, with limited order release. Supporting demand from ceramics and electronics industries weakened simultaneously. Demand in the feed sector did not improve, and transactions remained mediocre. Looking ahead to next week, the zinc oxide operating rate is expected to continue to decline to fluctuate around 54.11%.