National Day Holiday Arrangements for Galvanising Enterprises: Fewer Days Off YoY [SMM Analysis]

During the National Day holiday, the market is particularly concerned about downstream enterprises' inventory and holiday arrangements. SMM has gathered the following information on galvanising enterprises' holiday plans:

The sample includes 38 companies with a total capacity of 27.59 million mt. According to the SMM survey, 21 companies will take holidays, with durations ranging from 2 to 7 days, averaging 2.2 days. This affects zinc consumption by 4,768 mt, a decrease of 2,445 mt compared to 7,213 mt in the same period of 2023. In 2024, the National Day and Mid-Autumn Festival holidays are separate, with most companies taking time off during the Mid-Autumn Festival. Additionally, favorable national policies have boosted ferrous metals prices during the National Day holiday, improving consumption. As large companies are mostly pipe enterprises, the rise in ferrous prices has increased orders for galvanised pipes, leading to minimal or two-day holidays for adjustments. In terms of structural components, September and October are peak periods for iron tower and photovoltaic orders, so many companies will not take holidays or only short breaks to rush to meet deadlines. Some companies in Tianjin, affected by environmental protection upgrades in early September, will also not take holidays during the National Day to rush to meet deadlines. Regarding raw material inventory, with zinc prices remaining high, companies are cautious about purchasing at high prices. Combined with recent shortages in road transport capacities, the inventory cycle has been extended, with most companies stocking up for about 9 days.