SMM, February 28:
This week, the operating rate of zinc oxide recorded 57.40%, down 0.27% WoW. Raw material side, the decline in zinc prices this week led to a slight increase in raw material inventories, while finished product inventories remained largely unchanged, with enterprises maintaining a basic balance between production and sales. Order side, large tire manufacturers reported relatively stable and normal orders due to steady customer demand, while some small manufacturers indicated that orders were still recovering. For ceramic orders, the overall weak demand in the real estate market has kept ceramic orders from fully improving. Feed orders performed better than the same period last year as they were not affected by external factors such as swine fever this year. Additionally, orders for electronic products and chemical products, such as desulfurizers, have shown remarkable performance recently due to domestic policy support and strong market demand this year. Regarding the operating rate, a few enterprises remained shut down this week due to internal reasons, contributing to the decline in the operating rate. With the Two Sessions approaching, some enterprises indicated that environmental protection measures might slightly impact production next week. Therefore, the operating rate of zinc oxide is expected to remain around 57.44% next week.
