Industry News

Zinc Sulfate Heptahydrate

Overall Industry Trends: As the Lunar New Year approaches, most manufacturers have suspended production, leading to a continued tightening of supply. Driven by a confluence of factors—including rising zinc prices, a tightening supply of secondary zinc oxide, and escalating sulfuric acid costs—product prices remain firm.

Key Data and Market Dynamics: 

(1) Tight Supply: Manufacturer operating rates stand at 56% (down 12%), while capacity utilization rates are at 55% (down 3%); the suspension of logistics services has further exacerbated pressure on spot deliveries.

 (2) Robust Demand: Domestic industries—such as chemical fibers and mineral processing—have completed their quarterly inventory stocking, with products already warehoused; however, overseas inquiries have seen a slight decline due to the impact of the Lunar New Year holiday. 

(3) Cost Support: Prices for the primary raw material—secondary zinc oxide—remain at elevated levels; this, coupled with the high-level performance of benchmark zinc prices, provides strong cost support for product pricing. 

Market Outlook and Recommendations: 

Prices are expected to remain at elevated levels in the short term, with the possibility of further increases following the holiday period. Downstream customers—particularly overseas buyers—are advised to plan their procurement in advance to mitigate potential supply and logistics risks associated with the holiday season.