In June 2026, the operating rate of secondary copper rod was 14.04%, below expectations of 14.23%, down 0.66 percentage points MoM and down 19.57 percentage points YoY. In June, the secondary copper rod market operated under three main themes: the full-scale implementation of reverse invoicing compliance inspections, copper prices repeatedly testing the 100,000 mark, and the early timing of the Dragon Boat Festival holiday

[Resumption recovery, operating rates of galvanising producers rise]: This week's operating rate of galvanising producers was 54.56%, up 3.03 percentage points WoW. Raw material side, zinc prices rebounded this week. Downstream players primarily stayed on the sidelines, mainly picking up previously priced zinc ingots, while zinc ingot inventories at galvanising enterprises edged up. The operating rate rebound was mainly because some galvanising plants were closed for the Dragon Boat Festival last week, causing a sharp decline in operations, while this week they all resumed normal production, pushing the rate back up.

It is understood that the weekly composite operating rate of lead-acid battery enterprises across five provinces tracked by SMM from June 26 to July 2, 2026, stood at 64.1%, up 7.24 percentage points WoW. The gradual resumption of normal production by major lead-acid battery enterprises after the Dragon Boat Festival holiday was the main factor behind the rebound in the weekly operating rate. Notably, e-bike and automotive battery markets remained in the traditional off-season. Some lead-acid battery enterprises noted that battery orders in July further declined MoM from June, causing factory production not to fully recover to pre-holiday levels. If subsequent orders continue to weaken, further cuts to production line operating rates cannot be ruled out.

[Enterprises Gradually Resume Normal Production, Die-Casting Zinc Alloy Operating Rate Rises] The operating rate rise this week was mainly because enterprises that had suspended production due to the Dragon Boat Festival holiday last week gradually resumed normal production this week, thus driving the operating rate higher. However, end-user orders were fundamentally weak. ......

According to SMM, the weekly combined operating rate of lead-acid battery enterprises across five provinces stood at 56.86% during June 19–25, 2026, down 9.96 percentage points WoW. The week coincided with the Dragon Boat Festival holiday. Starting from the previous Friday (June 12), some lead-acid battery enterprises began their holiday, with breaks ranging from 1–2 days to 3 days, and a few even extended the leave to 5 days, dragging down the weekly operating rate for that week. Next week, as the holiday factor fades and July is about to begin, those enterprises that had been on holiday will resume normal production, driving the weekly operating rate to rebound. It is also worth noting that the off-season trend in the lead-acid battery market has not improved significantly so far. Producers’ orders remain weak, and most enterprises plan to maintain production cuts, staying cautious about lead-acid battery demand in July.

[Off-Season Shadow Looms, Galvanising Operating Rate Continues to Weaken]: The operating rate of the galvanising industry this week was 51.53%, down 5.18 ppts WoW. Raw material side, zinc prices pulled back to a more acceptable level for downstream users this week, and downstream users restocked heavily via price fixing. However, cargo pick-up was relatively slow, and zinc ingot inventory at galvanising enterprises edged up.