End-users show no highlights; zinc oxide operating rates maintain fluctuating trend [SMM Zinc Oxide Weekly Review]

This week, the operating rate of zinc oxide recorded 53.90%, up 0.65 percentage points WoW. Inventory side, zinc prices remained high and fluctuated this week, raw material costs for enterprises were elevated, procurement enthusiasm was low, and purchases were mostly made on a just-in-time basis, keeping raw material inventory at a low level. The rise in operating rate this week was mainly driven by previously suspended enterprises gradually resuming normal production, which pushed the zinc oxide operating rate slightly higher. End-user orders side, downstream tyre factories demand remained mediocre overall, tyre enterprises faced significant inventory pressure and insufficient procurement enthusiasm. Meanwhile, affected by persistently high zinc prices, zinc oxide enterprises in the market successively raised product quotations, but limited by market demand, the room for price adjustments was constrained. Looking ahead to next week, considering that the current production pace of enterprises is generally stable, the operating rate of the zinc oxide industry is expected to remain around 53.93%.