Holiday Is Basically Over: How Is the Resumption Pace of Galvanized Sheet Enterprises? [SMM Analysis]

SMM February 20 News:

       The Chinese New Year holiday has come to an end, and upstream and downstream enterprises in the zinc industry chain are gradually resuming production. As an important consumption sector for zinc, the resumption progress of galvanized sheet enterprises has drawn significant attention. What is the current progress? What are the expectations for the market outlook?

       According to SMM, most galvanized sheet enterprises resumed production between the sixth and ninth days of the Lunar New Year, while factories with longer holiday periods also largely resumed operations before the Lantern Festival. Based on this year's resumption situation, although some enterprises experienced slight delays in resuming production, most adhered to their holiday schedules and resumed operations as planned. The overall average holiday and production suspension duration was significantly shorter compared to other downstream zinc industries.

       From the perspective of post-holiday orders, although large enterprises maintained relatively high operating levels, domestic ferrous metals prices remained sluggish after the Chinese New Year. Coupled with the impact of low temperatures, outdoor construction and related projects have not yet fully recovered. As a result, the release of new orders related to galvanized sheets after the holiday has been limited, with some manufacturers still fulfilling orders received before the holiday. In February, the operating rates of galvanized sheet enterprises showed seasonal weakness.

       Looking ahead, most enterprises expect consumption to fully recover in March. However, they hold a cautious attitude toward domestic demand in the market outlook. Additionally, renewed trade frictions this year may have some impact on subsequent export orders for Chinese galvanized sheets, leading to a generally wait-and-see market sentiment.