SMM News on August 15:
This week, the operating rate of zinc oxide was recorded at 56.95%, up 1.27% WoW. On the raw material side, as zinc prices remained fluctuating this week, zinc oxide enterprises mainly made just-in-time procurement, and raw material inventories decreased MoM. In terms of finished product inventories, many enterprises in the terminal market still had strong wait-and-see sentiment amid the off-season, leading to a slight increase in finished product inventories. Regarding terminal orders, tyre factories currently have high inventories of rubber-grade zinc oxide, with some tyre factories still in a state of shutdown. The operating rates of all-steel tyres and semi-steel tyres are poor, dragging down the demand for rubber-grade zinc oxide. In the feed-grade zinc oxide sector, due to recent improvements in end-use demand, the operating rates of some enterprises have been continuously increasing. Ceramic-grade zinc oxide still exhibits obvious off-season characteristics. Orders in other sectors have not shown significant changes. Currently, except for a slight recovery in feed-grade zinc oxide orders, the seasonal off-season consumption remains evident for most zinc oxide terminal orders, with demand in the doldrums. However, with the recovery in feed market demand, it is expected that the operating rate of zinc oxide will reach 57.44% next week.
