SMM

SHANGHAI, Sep 26 (SMM) – According to SMM survey, the average operating rate of zinc oxide enterprises stood at 58.8% last week, down 0.1 percentage point on the week. The enterprises were not enthusiastic about restocking amid rising zinc prices, and mainly focused on consuming in-plant raw materials, which prompted the raw material inventory to decline. Meanwhile, most companies reported a slight week-on-week increase in orders last week, which stemmed from the stockpiling of downstream enterprises for the holiday. The finished product inventory dropped greatly. In addition, due to the upcoming 20th National Congress of the Communist Party of China, enterprises across many places faced production restrictions for environmental protection. For example, some enterprises in Shijiazhuang, Handan and Xingtai of Hebei provinces had to suspend or halve the production. Therefore, the backlog orders increased slightly. It is expected that the average operating rate of zinc oxide enterprises will remain flat this week out of pre-holiday stocking demand.