Some Galvanizing Plants Started Holiday Early, Operating Rates Weakened [SMM Galvanizing Weekly Review]

SMM April 30: The galvanizing industry operating rate was 61.21% this week, down 1.17 percentage points WoW. Raw material side, zinc prices pulled back to levels more acceptable to downstream this week, and downstream players stockpiled ahead of the Labour Day holiday in a timely manner, with zinc ingot inventory at galvanising enterprises increasing. The decline in operating rates was mainly due to some downstream players shutting down early for the Labour Day holiday as orders weakened, though mainstream galvanizing plants planned holidays ranging from 1 to 5 days. By segment, galvanized pipe traders had relatively high inventory and were purchasing as needed, but month-end demand weakened with poor orders, leading to weakening orders at galvanized pipe factories. Small pipe factories were more significantly impacted, with some halting production at month-end, while large factories maintained relatively stable production schedules. For structural components, orders were also severely polarized, with large factories having better orders while small factories had mediocre orders and operating rates below the same period last year. Overall, operating rates declined slightly, and as most enterprises will begin their Labour Day holiday on May 1, operating rates are expected to drop to around 48.91% next week.