Enterprise Production Halts and Holidays, Zinc Oxide Operating Rates Continue to Decline [SMM Zinc Oxide Weekly Review]

       This week, the zinc oxide operating rate recorded 33.82%, down 16.55 percentage points MoM. The significant decline in the operating rate was mainly due to enterprises entering the Chinese New Year holiday. On the inventory side, as the Chinese New Year holiday approached, the procurement pace of raw materials by enterprises slowed down significantly, and raw material inventories continued to decline; meanwhile, downstream purchase willingness weakened, leading to a slight accumulation of finished product inventories. In terms of orders, pre-holiday stockpiling by end-users across various sectors has largely concluded, with overall market trading remaining sluggish and zinc oxide demand showing mediocre performance. Looking ahead to next week, the industry will enter a full holiday period, with only a few large plants maintaining minimal production during the Chinese New Year, while most zinc oxide enterprises will gradually halt operations for the holiday. As a result, the zinc oxide operating rate is expected to further decline and fluctuate rangebound around 7.34%.