According to SMM survey, the average operating rate of zinc oxide enterprises was 63.9% last week, up 2.9 percentage points from the previous week. Weak zinc prices combined with lower zinc slag coefficient kept most zinc oxide plants restocking as needed ahead of the holidays, growing raw material inventories.
Orders at zinc oxide plants were stable thanks to strong production at tyre manufacturers. Almost no zinc oxide plant closed during the Dragon Boat Festival holidays. The plum rain season in south China has not affected production. Recent production resumptions have buoyed operating rates significantly. Operating rates are expected to remain at the current level this week.
