Zinc oxide market price is running steadily in this cycle. On the raw material side, production cuts by zinc smelters have led to a tightening of market supply, while in the long term the pattern of oversupply remains as new mines come into operation and old ones resume production. Meanwhile, demand was constrained by environmental protection policies, making the zinc market demand less than expected.

Tyre enterprises continued to improve their work rate in this cycle. All-steel tyres, enterprise start-up situation there are differences, most of the large-scale enterprise start-up smooth improvement, inventory is relatively sufficient, part of the small and medium-sized enterprises overall start-up slow, enterprise internal and external sales orders overall performance is general. Semi-steel tyre, enterprise production and sales is relatively high, manufacturers start work enthusiasm is better, start in the high level on the basis of still have a small probe, export orders performance is stronger, part of the dependence on the export of manufacturers have a strong start support, inventory is relatively low.

Comprehensive analysis of the above factors, the zinc oxide market is expected to stabilise prices, the supply and demand pattern of the zinc market presents a short-term supply tightening and long-term production increase is expected to co-exist. In the short term, supply reduction and weak demand makes the market show a tense situation, zinc prices are supported, zinc oxide to maintain a strong cost support; and downstream demand, tyre and product enterprises are relatively stable start-up, fluctuations are limited, the demand for more than just fixed picking based on raw materials, so raw materials are high, but under the influence of the weak demand is expected to zinc oxide to maintain a stable price operation.