2026 Galvanized Sheet Chinese New Year Break Arrangements: A First Look!

SMM Feb 4 News:

With the Chinese New Year holiday approaching, galvanized sheet plants in multiple domestic regions have successively announced their holiday shutdown plans. SMM conducted a survey on the holiday situation among galvanized sheet enterprises, covering a sample of 22 enterprises with a total annual capacity of 16.83 million mt.

The results show that only four sample enterprises chose to operate normally during the Chinese New Year. The average holiday duration across the sample was about 9.8 days, increasing slightly by about 1 day YoY. It is understood that processing fees for low-zinc-coating galvanized sheets in the Shandong region remain persistently low, leading to losses on toll processing orders. Some galvanized sheet plants have low willingness to continue production, therefore opting for an earlier holiday shutdown, resulting in an increase in holiday duration.

Looking at overall orders, export orders involving the purchase of customs clearance documents have decreased due to the implementation of export licenses in 2026, impacting some galvanized sheet orders. Additionally, domestic trade is also in its off-season cycle. Orders for construction sheets have seasonally weakened due to cold weather, while orders from the home appliance and automotive sectors remain relatively stable. Overall galvanized sheet demand performance is moderate.

Regarding raw material stocking, ferrous metals prices have weakened recently, and zinc ingot prices have also retreated from highs. Some galvanized sheet plants have taken the opportunity to make purchases and build stocks. However, due to generally moderate production schedules, most Chinese New Year stockpiling is essentially only sufficient for production during the holiday period. Overall operations are mostly expected to resume in late February or by month-end. SMM will continue to monitor the subsequent operating situation of the galvanized sheet market.