SMM December 26:
This week, the zinc oxide operating rate was 57.04%, up 1.16 percentage points WoW. Raw material side, zinc prices fluctuated rangebound this week, and zinc oxide enterprises restocked on dips, leading to a slight increase in raw material inventory. Finished product inventories side, some companies reported good shipments during the week, resulting in a slight decrease in finished product inventories. End-use demand side, orders from large enterprises remained relatively stable, and with smaller fluctuations in zinc prices this week, downstream demand improved slightly. Additionally, as year-end approaches, end-use demand for feed-grade zinc oxide recovered, leading to better order books for enterprises. However, recent overall demand for rubber-grade and ceramic-grade zinc oxide has been relatively average, and as the seasonal off-season begins, companies hold a cautious outlook on future demand for ceramic-grade zinc oxide. The rise in the zinc oxide operating rate this week was partly due to enterprises that previously cut production for environmental protection reasons fully resuming normal operations, while stronger demand from some companies also supported a slight increase in the operating rate. Looking ahead to next week, orders from large enterprises are generally relatively stable, which is expected to continue supporting the zinc oxide operating rate, with the rate forecast to fluctuate around 57.26%.
