[Many Galvanizing Plants Shut Down for Labour Day Holiday, Operating Rate Weakened]: The galvanizing industry's operating rate was 47.76% this week, down 13.45 percentage points WoW. Raw material side, zinc prices surged this week, and downstream purchase willingness was low, but some long-term contract deliveries arrived, and zinc ingot inventory at galvanising enterprises edged up.

During the May Day holiday in 2026, LME zinc traded in a general sideways range, finding solid support at the 40-day moving average. In terms of specific performance, LME zinc showed an N-shaped trend of rising first, then falling and rebounding again.

[Stable Production Schedules at Galvanizing Plants, Operating Rates Edged Up Slightly]: The operating rates of galvanising producers stood at 62.38% this week, up 0.25 percentage points WoW. Raw material side, zinc prices fluctuated at highs throughout the week, with downstream buyers mainly restocking on rigid demand. There was no pre-holiday stockpiling sentiment for the time being, and zinc ingot inventory at galvanising enterprises declined slightly.

[Galvanizing Plant Operating Rates Rose]: The operating rates of galvanising producers stood at 62.13% this week, up 4.24 percentage points WoW. Raw material side, zinc prices fluctuated at highs throughout the week, with downstream players picking up fewer goods and mainly consuming existing stocks, leading to a decline in zinc ingot inventory at galvanising enterprises.

[Qingming Holiday Impact on Galvanizing Operations]: The operating rates of galvanising producers stood at 57.89% this week, edging down 0.86 percentage points WoW. Raw material side, zinc prices fluctuated at highs throughout the week, with downstream players picking up fewer goods and mainly consuming existing stocks. However, zinc ingots previously priced by galvanising enterprises were delivered successively, and zinc ingot inventory at galvanising enterprises edged down slightly.

[Environmental Protection in Northern China Affected Galvanizing Operating Rates]: This week, the operating rate of the galvanizing industry was 58.75, down 0.13 percentage points WoW. Raw material side, zinc prices fluctuated at highs this week, and galvanising enterprises mainly digested inventories, but with only small volumes of earlier price-fixed purchases and long-term contracts, zinc ingot inventories at galvanising enterprises edged down. The operating rate declined this week, mainly due to environmental protection-driven production restrictions in some northern regions, which affected operations.

[SMM Zinc Morning Comment: China’s Zinc Ingot Continued Destocking on Thursday, and the Center of SHFE Zinc Edged Higher] Overnight, the most-traded SHFE zinc 2605 contract opened at 23,100 yuan/mt. After the opening, SHFE zinc fluctuated upward, touching a high of 23,340 yuan/mt near the beginning of the session. It then slowly pulled back amid fluctuations to around the daily average line, hitting a low of 23,070 yuan/mt, and finally closed up at 23,170 yuan/mt..

[Zinc Prices Broke Lower and Moved Downward, with Good Trading This Week]: Spot premiums in Tianjin rose slightly this week, up 10 yuan/mt WoW. As of this Friday, in China, standard brands were quoted at discounts of around 20-70 yuan/mt against the 2604 contract, while high-priced brands were quoted at discounts of around 10 yuan/mt to premiums of around 10 yuan/mt against the 2604 contract. Tianjin was quoted at a discount of around 10 yuan/mt against Shanghai.

[Environmental Protection Measures in Northern China Weighed, Overall Trading Was Average This Week]: Spot premiums in Tianjin were flat WoW this week. As of this Friday, in China, standard domestic brands were quoted at discounts of around 50-100 yuan/mt against the 2604 contract, high-priced brands at discounts of around 30-60 yuan/mt against the 2604 contract, and Tianjin was quoted at a premium of around 10 yuan/mt against Shanghai.

[SMM Morning Meeting Minutes: Macro Sentiment-Driven, LME Zinc Center Shifts Lower] Overnight, LME zinc posted a large bearish candlestick, with the upper Bollinger Bands midline forming resistance and the lower 60-day moving average providing support. The Middle East conflict escalated, the US dollar strengthened, oil prices hit a new high since July of the year before last, inflation expectations rose, and the US Fed......