SMM

SHANGHAI, Aug 29 (SMM) - According to SMM survey, the average operating rate of zinc oxide producers stood at 54.4% last week, down 0.1 percentage point on the week. In terms of raw material inventory, although zinc prices continued to rise last week, enterprises had to purchase as needed, so the inventory of zinc ingots increased slightly. In terms of orders, due to the relatively sluggish market as a whole, zinc oxide orders fell along with a neutral macro environment, and some producers decided to cut the production further in the next month. In terms of finished product inventory, the operating rates of some producers declined last week, while the downstream enterprises such as tire manufacturers still purchased on rigid demand. As a result, the finished product inventory fell. On the whole, the chances are little that future consumption of zinc oxide will improve. Under these circumstances, the inventories of finished products and raw materials are expected to stabilise at a low level, and the average operating rate is unlikely to increase.