Less than 5% zinc oxide orders affected by tire capacity utilization decline

The nano zinc oxide program of Guangdong-based Shaoguan Kaihong Nanomaterials Co., Ltd. has completed for trial production.

It is a key program supported by the circular economy project in Guangdong province. The program’s annual output is expected to reach 2 billion yuan when it is put into operation.

Although the capacity utilization of tire producers has declined recently, it has little impact on new zinc oxide programs and relevant producers for two reasons:

First, stricter environmental protection inspection led to production reduction and closedown of some small zinc oxide producers, large producers with strong capacity still received stable orders.

Second, after the decline in tire market demand, some zinc oxide producers turned to accept orders from chemicals, pottery and porcelain, and medical sectors, which offset some of orders they lost in the tire market.

A research institute estimates that the decline in capacity utilization of tire producers in Shandong province only affected less than 5% orders of zinc oxide producers.

Zinc oxide is a key chemical additive widely used by rubber, chemical and coating sectors.