What are the holiday arrangements for galvanising enterprises during the Labour Day holiday? 【SMM Analysis】

SMM News on April 29: As the Labour Day holiday approaches, SMM conducted a survey on the holiday arrangements of galvanising enterprises during the Labour Day period. This survey involved 27 galvanising enterprises with a total capacity of 21.38 million mt. According to SMM, some enterprises will take a holiday ranging from 1 to 5 days during the Labour Day holiday, while others will continue normal production without taking a holiday. This is expected to affect zinc consumption by approximately 5,309 mt. SMM learned that the overall galvanizing operating data for April was good, with steel tower orders continuing to perform well. Additionally, the State Grid launched a new round of tenders for steel tower projects at the end of April, with a notable increase in ultra-high voltage steel tower projects. However, PV orders fell short of expectations this year, and overall demand pulled back. In terms of exports, despite a 90-day grace period for tariffs, trading companies stocked up on goods, and some enterprises saw an increase in "rush export" orders in April. However, most enterprises are concerned about sudden tariff increases during transportation, and downstream enterprises are cautious. The increase in export orders is not significant, and growth in May is uncertain. Overall, orders are weaker than last year, and the average number of holiday days has increased compared to last year. Regarding raw material inventories, zinc prices were in the doldrums overall in April, and downstream enterprises engaged in more point-price restocking, significantly increasing raw material inventory levels. Since the beginning of this year, concerned about market fluctuations, most enterprises have opted for a low-inventory turnover model, resulting in not-high finished product inventories. SMM will continue to monitor the resumption of work after the Labour Day holiday.