Galvanizing Enterprises Saw Fewer Resumptions This Week, Operating Rates Declined Compared to Pre-Holiday Levels [SMM Galvanizing Weekly Review]

SMM February 27 News: This week, the operating rates of galvanising producers were at 6.84%, down 6.2 percentage points MoM from before the holiday. Raw material side, zinc prices mainly fluctuated this week, but most downstream enterprises were still on holiday and not yet in operation. Transportation was gradually recovering, and enterprises were mainly consuming inventory, with a slight decrease in zinc ingot inventories for galvanising enterprises. The decline in operating rates was mainly due to the impact of the Chinese New Year holiday. This week, some large factories officially resumed work on the tenth day of the first lunar month (February 26), and workers were returning, but production had not yet reached full capacity. Most enterprises remained in a state of shutdown and holiday, leading to a significant drop in operating rates. End-users made small orders, and long-distance transportation vehicles were gradually resuming, resulting in a slight decrease in finished product inventories for galvanising enterprises. Galvanising enterprises are expected to largely complete their resumption of work by the Lantern Festival (March 3), and it is forecasted that next week's operating rates will rise to around 39.58%.