Noticias Del Sector

(I) Zinc Sulfate Monohydrate: Operating rates have rebounded slightly, yet capacity utilization has declined again, indicating intensified 

production cuts by major manufacturers and a further, substantial tightening of market supply. Cost-side support remains robust—sulfuric 

acid prices are holding steady at high levels, but more crucially, the coefficient for secondary zinc oxide remains persistently high, acting 

as a key "hard constraint" on current pricing. However, amidst the off-season for demand, prices are merely holding steady rather than 

rising. Regarding raw materials: Sulfuric acid prices remain high and stable (ex-factory quotes: 1,780–1,980 RMB/ton in Guangxi; 1,800–2,000 

RMB/ton in North China and Shandong; 1,900–2,100 RMB/ton in Hunan), and the secondary zinc oxide coefficient remains high.

(II) Zinc Sulfate Heptahydrate: Downstream demand has weakened, with manufacturers operating at low loads. Order coverage: 25–30 days 

(flat); operating rate: 72% (flat); capacity utilization: 56% (down 1%). Key drivers: ① Costs continue to trend upward. Zinc market prices have 

fluctuated upward, buoyed by positive macroeconomic sentiment; combined with the high coefficient for secondary zinc oxide, raw material 

costs continue to provide solid support for product prices. ② Demand faces broad pressure. In the chemical fiber industry, maintenance 

shutdowns continue during the off-season, keeping demand sluggish; in the mineral processing sector, declining lead and zinc grades in raw

 ore have led to a downward trend in demand for processing reagents; shipping rates for major export routes to South America have retreated

 slightly but remain high, offering no boost to export activity. Operational advice: Purchase based on inventory levels and actual needs.

(III) Active Zinc Oxide: Production cuts exceeding expectations provide a "floor" for prices, as manufacturers firmly defend price levels. Order

 coverage: 20–25 days (flat); operating rate: 64% (down 8%); capacity utilization: 38% (down 3%). Although demand is generally weak, prices 

show no downward trend, supported by high raw material costs and further contraction in manufacturer capacity. Key drivers: ① Raw material

 costs exhibit distinct "rigid" characteristics. The transaction coefficients for secondary zinc oxide are tracking the high levels of benchmark zinc

 market prices, and while sulfuric acid prices vary by region, they remain high across the board; these factors effectively eliminate any possibility

 of a significant drop in active zinc oxide prices at the source. ② Weak demand. Although live hog prices in the feed industry have rebounded 

(rising by approximately 1 yuan/kg since June), the situation regarding losses has not yet shown significant improvement. The tire sector—a key 

consumer of rubber—has entered its traditional off-season (industry feedback indicates a demand decline of roughly 30–50% compared to the

 first quarter), with customers in both the rubber and feed industries maintaining a "purchase-as-needed" strategy. Meanwhile, end-users in the 

desulfurization sector remain reluctant to replace desulfurization agents, resulting in a lack of demand growth within that industry.