Galvanizing Enterprise Holidays Increase, Operating Rates Significantly Decline [SMM Galvanizing Weekly Review]

SMM February 6: This week, the operating rate of the galvanizing industry was 38.60%, down 7.49 percentage points WoW. Raw material side, zinc prices dropped back slightly, but most downstream enterprises were on holiday, with only a few placing orders and picking up goods. Large plants received long-term contract deliveries gradually, and zinc ingot inventories at galvanising enterprises increased. The decline in operating rates was mainly affected by the Chinese New Year holiday. Most small and medium-sized enterprises had already suspended operations for the holiday this week, while large plants mostly planned to maintain zinc pot temperatures until the Little New Year, but have now started to reduce or halt production lines successively. Most large plants operated at only around 50% capacity, with operating rates falling significantly. End-users were basically on holiday, the pace of cargo pick-up slowed down, and finished product inventories at galvanising enterprises increased. Under the holiday schedule of galvanising enterprises, operating rates are expected to continue declining to around 15.17% next week.