Zinc Oxide Operating Rates Rebound Slightly, End-Use Demand Performance Diverges [SMM Zinc Oxide Weekly Review]

The zinc oxide operating rate recorded 51.08% this week, up 1.32 percentage points WoW. Inventories: zinc prices continued to consolidate at highs this week, and enterprises' raw material purchases were mostly need-based. Finished product inventories: although some previously suspended enterprises resumed production this week and industry operating rates rebounded somewhat, affected by production curbs and low-inventory strategies at some enterprises, finished product inventories continued the destocking trend, and overall inventory levels declined somewhat. End-user orders: downstream demand was slightly divergent across sectors; tires, ceramics, and other sectors were in the traditional off-season, with limited order growth; feed-grade zinc oxide demand remained weak; electronic-grade zinc oxide was supported by power grid investment, with relatively stable end-user orders. Looking ahead to next week, as enterprises that recently resumed production gradually return to normal capacity, the zinc oxide operating rate is expected to continue rising to around 53.28%, fluctuating near that level.