Finished Product Inventories Rise, Zinc Oxide Operating Rate Continues to Decline [SMM Zinc Oxide Weekly Review]

This week, the operating rate of zinc oxide enterprises recorded 57.11%, down 0.34 percentage points WoW. Inventory side, affected by weakening end-use demand in some sectors, some enterprises saw finished product inventory buildup. Finished product inventories continued to increase this week. Meanwhile, high zinc prices dampened enterprises' willingness to purchase raw materials, and raw material inventories edged down. End-use demand side, as the off-season began, orders across sectors generally weakened. Among them, orders for electronic-grade zinc oxide remained relatively stable, and power grid-related orders still provided some support to related demand. However, demand for ceramic-grade and rubber-grade zinc oxide was relatively mediocre, and orders for feed-grade zinc oxide were weak. Looking ahead to next week, the operating rate of zinc oxide enterprises is expected to continue its downward trend, hovering around 57%.