SMM January 20 News:
As the Chinese New Year holiday approaches, galvanising enterprises are gradually planning their holiday schedules. According to SMM's communication, this involves 34 enterprises with a total capacity of 249.5 million mt. The holiday is expected to impact zinc consumption by approximately 47,002 mt, with an average holiday duration of around 19 days, about 2 days shorter than last year. Overall demand in Q4 was better than expected, and galvanizing orders remained relatively strong into early January. Most enterprises planned high production volumes for January, with some having "rush export" orders and scheduling their holidays later. However, by mid-January, orders dropped sharply, leading some enterprises to start their holidays earlier. After the mid-January decline in zinc prices, some galvanising enterprises engaged in a certain degree of stockpiling. Overall operations are expected to resume around mid-February. SMM will continue to monitor the subsequent operating conditions of galvanising enterprises.
