Order Demand Improved in Some Sectors, Zinc Oxide Operating Rates Rebounded Steadily [SMM Zinc Oxide Weekly Review]

This week, the operating rate of zinc oxide was 57.78%, up 2.28 percentage points WoW. Inventory side, zinc prices held up well this week, with the market dominated by just-in-time procurement. Raw material inventory at zinc oxide enterprises declined somewhat, while affected by high prices, the pace of warehouse withdrawals slowed and finished product inventories increased. The rise in zinc oxide operating rates this week was mainly due to generally solid orders at large plants, while improved orders at some enterprises also supported higher operating rates. By segment, orders for rubber-grade zinc oxide at large plants have remained generally normal recently, while orders at small and medium-sized enterprises were relatively average; demand for feed-grade zinc oxide was weak due to sluggish conditions in the hog market; meanwhile, demand for electronic-grade zinc oxide gradually recovered, with enterprises reporting some improvement in orders during the week. Looking ahead to next week, although it coincides with the Qingming Festival holiday, as market demand gradually returns to normal, the operating rate of zinc oxide enterprises is expected to continue rising and fluctuate around 58.48%.