SMM Oct. 10: This week, the operating rate of galvanising producers was recorded at 46.83%, down 8.98 percentage points from the pre-holiday level. In terms of raw material inventory, zinc prices saw a rebound this week, but due to widespread holiday closures downstream during the National Day holiday and arrivals during the holiday, zinc ingot inventory increased. The main reason for the decline in operating rates was the impact of the National Day and Mid-Autumn Festival holidays, with enterprises taking holidays ranging from 2 to 6 days. Since the Mid-Autumn Festival fell on the 6th, many companies chose to take holidays around the 6th, which had a significant impact on overall operations. For galvanized pipe producers, due to weak downstream market demand before the holiday and low restocking willingness, some traders started placing orders sporadically from the 4th. However, constrained by logistics issues during the National Day holiday, most shipments had to be postponed until after the holiday. Galvanized pipe enterprises, concerned about excessive finished product accumulation, opted for shutdowns and holidays. In terms of galvanized structural components, orders for steel towers remained relatively good, with fewer holidays taken; most operated normally during the holiday or took only one day off for the Mid-Autumn Festival. Other enterprises determined their holidays based on order delivery schedules, with galvanising enterprises in south China mostly choosing to take holidays for the Mid-Autumn Festival. Overall, demand fell short of expectations, but as October progresses, demand may marginally improve. Next week, the operating rate is expected to rebound to around 57.94%.
