Post-holiday Resumption, Operating Rate Rises [SMM Galvanizing Weekly Review]

SMM, October 16: This week, operating rates of galvanising producers rebounded to 53.50%, up 17.24 percentage points WoW. Raw material side, zinc prices fell after the holiday, galvanising enterprises showed improved purchasing enthusiasm, and some enterprises increased zinc ingot purchases as prices pulled back, partially replenishing raw material inventory consumed before the holiday. However, the current increase in purchases was mainly driven by the decline in zinc prices, with enterprises still primarily restocking on dips. On the operating side, as the National Day holiday ended, galvanising enterprises gradually resumed production, and those that had halted or cut production during the holiday returned to normal production schedules, driving a sharp rebound in industry operating rates. Demand side, end-use consumption recovery after the holiday was moderate, new orders had yet to show significant improvement, and the production recovery at some enterprises reflected normal post-holiday production resumptions, with actual demand still providing relatively limited boost to operating rates. Next week, operating rates of galvanising producers are expected to consolidate with a slight increase to 53.59%.