SMM Oct. 17:
This week, the zinc oxide operating rate was 57.13%, up 1.05 percentage points WoW. Inventory side, affected by the recent increase in zinc slag and low-grade zinc oxide payables, zinc oxide enterprises faced not only difficulties in raw material procurement but also significant cost pressure. Raw material inventory decreased WoW. Finished product inventories side, some large plants had a fast shipment pace but faced difficulties in raw material procurement, leading to a WoW decrease in finished product inventories. For end-user orders, rubber-grade zinc oxide orders remained relatively normal overall, with stable demand from large plants. Ceramic-grade zinc oxide demand was in the doldrums due to the drag from the real estate sector. In comparison, feed-grade zinc oxide demand was relatively better, but the industry also faced the situation of poor orders from small and medium-sized end-users while large enterprises maintained stable orders. The WoW increase in the operating rate was mainly driven by some enterprises resuming normal production during the week, boosting production. Looking ahead to next week, if the difficulty in raw material procurement can be alleviated to some extent, the zinc oxide operating rate is expected to rise to around 57.87%.
