According to SMM research, most galvanising enterprises resumed production between the tenth day (February 26) and the sixteenth day (March 4) of the first lunar month. Small and medium-sized enterprises generally resumed operations after the Lantern Festival (March 2), with an average holiday duration of around 21 days.

[Galvanising Enterprises Resume Normal Operations After Holiday, Operating Rates of Galvanising Producers Rise]: This week, the operating rates of galvanising producers reached 59.58%, up 7.41 percentage points WoW. In terms of raw material inventory, zinc prices fluctuated this week. Downstream enterprises mainly relied on long-term contracts or only purchased based on immediate needs, leading to a slight decline in zinc ingot inventory.

[Galvanising Enterprises Mostly Arranged Holidays During Dragon Boat Festival, Operating Rates of Galvanising Producers Declined]: This week, the operating rate of galvanising producers was recorded at 52.17%, a decrease of 9.86 percentage points WoW. In terms of raw material inventory, zinc prices fluctuated upward this week. Prices pulled back at the beginning of the week, prompting some downstream enterprises to restock slightly, leading to a slight increase in zinc ingot inventory. The main reason for the decline in operating rates this week was that the end of the week coincided with the Dragon Boat Festival holiday, with most enterprises arranging holidays lasting 1-2 days, and a few enterprises arranging a 3-day holiday, which affected production.

[Production of some early orders commenced, operating rates of galvanising producers slightly increased]: This week, the operating rate of galvanising producers reached 62.03%, up 1.08 percentage points WoW. In terms of raw material inventory, zinc prices fluctuated and consolidated this week, with some downstream enterprises slightly restocking, leading to a slight increase in zinc ingot inventory.

[Galvanising operating rates reached a nearly three-year high in April. How did different regions perform?] April, as a traditional peak season, saw robust overall demand for galvanising. Due to issues such as tariffs, there was an early release of future demand, resulting in relatively good overall operating rates. How did North China, east China, and South China perform respectively? Can the robust trend continue in May?

Some export orders increased, and the operating rates of galvanising producers rose. This week, the operating rate of galvanising producers reached 64.34%, up 0.6 percentage points WoW. In terms of raw material inventory, zinc prices continued to pull back this week, but downstream sentiment remained bearish, with restocking or inventory consumption driven by rigid demand, leading to a slight drop in zinc ingot inventory.

【Partial Enterprise Maintenance, Decline in Galvanizing Operating Rates】: This week, the operating rate of galvanizing producers recorded 59.75%, a decrease of 0.9 percentage points WoW. In terms of raw material inventory, zinc prices continued to fluctuate at high levels this week, with downstream purchasing enthusiasm not high. Coinciding with the commencement of new long-term contracts, large plants primarily focused on long-term contracts, leading to a decline in zinc ingot inventory. The weekly operating rate decreased, mainly due to medium-sized enterprises halting production for maintenance of zinc pots, with production expected to resume in early April, affecting the operating rate.

At the 2024 SMM 19th Lead and Zinc Conference and Lead and Zinc Technology Innovation Forum -Lead and Zinc Market Forum hosted by SMM, Han Zhen, senior analyst of the lead and zinc industry of SMM, analyzed the current status of the zinc market in 2024 and made a forecast on its future prices. She said that SMM expects that domestic zinc concentrate supply will be relatively tight in 2024.

At the 2023 SMM 12th Metal Industry Annual Conference - SMM Zinc Industry Annual Conference co-sponsored by SMM, Chongqing Jiangjin District People's Government, and Shanghai Stock Exchange, Han Zhen, SMM senior zinc analyst, gave an outlook on the zinc market in 2024 and prediction of long-term contracts. She said that on the mining side, the increase in overseas zinc ore production in 2023 was less than expected, and the output may increase significantly in 2024.