New Year's Day Holiday Schedule, Galvanizing Operating Rates Decline [SMM Galvanizing Weekly Review]

SMM December 31: This week, the operating rate of galvanising producers recorded 52.98%, down 3.69 percentage points WoW. In terms of raw material inventory, zinc prices fluctuated at highs at the beginning of the week, most traders closed their accounts for settlement, downstream stockpiling was largely completed earlier, and the focus this week was on digesting inventories, leading to a decline in zinc ingot inventories at galvanising enterprises. The reasons for the weekly decline in the operating rate were: approaching year-end, some large plants suspended production for inventory counting and year-end stocktaking, focusing on shipments, resulting in a decrease in finished product inventories. Meanwhile, many areas in Hebei issued orange and red environmental protection alerts, affecting enterprise operations. Demand side, as the weather in the north gradually turned colder, demand weakened gradually, ferrous metals prices pulled back, end-users were not active in purchasing, orders fell short of expectations, and consumption was weaker than the same period last year. Most enterprises took 1–2 days off for New Year's Day, affecting operations. The operating rate is expected to rebound to 54.93% next week.