SMM

SHANGHAI, Sep 24 (SMM) - According to SMM survey, the average operating rate of zinc oxide enterprises came in at 54.1% last week, down 2.1 percentage points from the previous week. As the spot premiums hovered at high levels amid high zinc prices and short squeeze, the enterprises were less active in stockpiling, and the raw material inventory declined among concentrated consumption. In terms of orders, most enterprises in Jiangsu reported slack new orders, and that they mainly produced to deliver previous orders. In contrast, the enterprises in Hebei received stable orders, and the major increase was brought about by orders from tyre sector. On the whole, the zinc oxide orders were stable. In terms of finished product inventory, most enterprises were willing to sell amid high zinc prices rather than producing. Although some enterprises saw an increase in finished product stocks due to poor orders or pandemic, the total in-plant finished products still declined. It is estimated that the average operating rate will drop this week.