SMM January 24 News: This week, the operating rate of galvanising producers was 12.31%, pulling back by 32.6 percentage points WoW. Regarding raw material inventories, enterprises are expected to stockpile before the holiday. During the week, zinc prices pulled back slightly, leading to limited restocking, resulting in a marginal increase in raw material inventories. The main reason for the decline in this week's operating rate is the approach of the Chinese New Year, with fewer transportation vehicles available. Large galvanising enterprises have mostly started their holiday from this week, with operating days around two days, while some smaller enterprises with pending orders are delaying their holiday. End-user activity has largely stagnated, coupled with some transportation disruptions, leading to an accumulation of finished product inventories. For galvanised structural components, some enterprises have suspended production and conducted maintenance before the holiday to prepare for a quick resumption of operations after the holiday. Next week, almost all galvanising enterprises are expected to suspend production for the holiday, reducing the operating rate to 0.
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