SMM Update on Chinese New Year Holiday Arrangements of Galvanising Producers

SHANGHAI, Jan 10 (SMM) - The Chinese New Year of 2023 will arrive earlier than previous years, and many terminal enterprises and processing enterprises have started to take holidays since the New Year's Day. SMM thus conducted a survey on the holiday arrangements of galvanizing companies. The survey samples involved a total production capacity of 25.90 million mt, and the majority of the samples were medium-sized and large enterprises.

Judging from results of the survey, there will be two peak seasons of closure. The first period is before the New Year's Day, when small businesses took holidays in advance affected by the widespread covid-19 pandemic and falling orders. The second will last from January 4 to January 13. On the whole, the holidays this year will start slightly earlier than in previous years. As for restocking demand, the amount of raw material purchases have decreased for two reasons. On the one hand, the enterprises were not upbeat about the zinc oxide prices in the wake of the holiday. On the other, the uncertainty of orders in the future prompted enterprises to stockpile only on rigid demand.

Overall, roughly 49,637 mt of zinc ingot consumption will be affected during the holiday.