This week, the operating rate for zinc oxide came in at 52.33%, up 1.25 percentage points MoM. On the inventory side, after the zinc price center pulled back this week, some enterprises increased raw material purchases on dips, driving a slight increase in raw material inventory; meanwhile, enterprises that previously halted production for maintenance were still mainly drawing down inventories as their equipment had not yet been fully commissioned, leading to a decline in finished product inventories. This week, the zinc oxide industry’s operating rate continued to rebound, mainly lifted by the ramp-up in operating levels as some enterprises gradually resumed production. End-use demand, consumption in the tire and ceramics segments, which account for a relatively large share, remained mediocre in recent periods; for feed-grade zinc oxide, affected by hog prices staying at low levels, the breeding side showed insufficient willingness to expand herds, and some farming enterprises brought forward marketings by selling piglets early, leaving feed-grade zinc oxide demand weak; orders for electronic-grade zinc oxide were relatively stable. During the week, some enterprises were still in the stage of equipment commissioning and preparations for production resumptions. As related capacity is restored in succession, the operating rate for the zinc oxide industry was expected to continue to rise next week, fluctuating around 53.58%.
