A Sneak Peek at Labour Day Holiday Schedules of China's Galvanized Sheet Mills!

SMM Apr 30 News:

As the Labour Day holiday approaches, SMM communicated with galvanized sheet enterprises regarding their holiday arrangements. The survey covered 20 galvanized sheet enterprises with a combined capacity of 17.06 million mt/year, affecting zinc consumption of 243 mt. Based on the findings, only two enterprises plan to undergo maintenance or halt production during the Labour Day holiday, while the majority of galvanized sheet mills will maintain normal production operations.

From an order perspective, although the Middle East situation remained stagnant and China's galvanized sheet export orders to the Middle East have yet to recover, Southeast Asian demand remained robust. Combined with the gradual recovery of domestic trade demand in China, overall galvanized sheet orders were at a seasonal high in April. However, some enterprises reported that domestic trade orders in May are expected to pull back somewhat, and related production activity is unlikely to match April levels.

From a profitability perspective, Shandong has a large number of toll processing mills. According to sources, processing fees for thin sheets in Shandong were at low levels in April, basically hovering around the breakeven line or in a slight loss position. However, some mills showed a willingness to maintain production, and related production activity did not see a notable decline.

From a raw material perspective, futures zinc prices have dropped notably recently, and some galvanizing mills took the opportunity to fix prices and purchase. Overall, raw material stocking for the holiday has been largely completed.

(The above information is based on market collection and comprehensive evaluation by the SMM research team. The information provided in this article is for reference only. This article does not constitute direct advice for investment research and decision-making. Customers should make cautious decisions and should not replace their independent judgment with this information. Any decisions made by customers are not related to SMM.)