Zinc prices rose to a four-month high. How did downstream operations perform? [SMM Analysis]

SMM, September 29: This week, zinc prices surged, significantly raising the overall focus. However, why did the operating rates for galvanizing and die-casting zinc alloy both strengthen? The main reasons are, firstly, the resumption of operations by companies that halted production during the Mid-Autumn Festival, boosting the overall operating rate. Secondly, due to the National Day holiday, many companies increased production to meet downstream demand during the short holiday. Additionally, favorable policies in the galvanizing sector led to a slight rise in ferrous metals prices, enhancing downstream demand and increasing shipments. Zinc oxide companies saw a decline in operating rates during the week due to maintenance by the power company at their plants. Overall, galvanizing and die-casting zinc alloy improved MoM, while zinc oxide decreased MoM. Downstream consumption still showed no significant peak season performance.