SHANGHAI, Feb 14 (SMM) - The average downstream raw material inventory days in January decreased by 1.1 day to 5.9 days compared with December 2022. The average inventory day dropped 1.1 day to 6.1 days at galvanising plants, fell 1 days to 4.1 days at die-casting zinc alloy plants and declined 0.2 day to 10.7 days at zinc oxide plants.
In detail, according to SMM research, the rising zinc prices in January led to cautious sentiment across downstream companies, hence the restocking amount was relatively small. In light of the resumption of production, the raw material inventory days of galvanising enterprises has declined, implying a significant increase in operating rates in February. The raw material inventory days of die-casting zinc alloy enterprises declined as they purchased as needed amid the cautious sentiment. The raw material inventory days of zinc oxide producers declined in light of tight supply and high costs caused by the production suspension of galvanising enterprises amid the CNY holiday.
