[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.

Q1 coincided with the Chinese New Year holiday. Most enterprises gradually resumed work in March, with consumption performance being mediocre and galvanizing operations relatively weak. Can consumption improve in Q2?

[Renewed Environmental Protection Measures in Northern China Slightly Weighed on Galvanizing Operating Rates]: This week, the operating rate of the galvanizing industry was 58.88, down slightly by 0.81 percentage points WoW. Raw material side, zinc prices rebounded this week, downstream pick-up of goods was limited and consumption was mainly from existing stocks, but zinc ingots previously price-fixed by galvanising enterprises arrived one after another, leading to a slight decline in zinc ingot inventory at galvanising enterprises. The lower operating rate was mainly due to the renewed environmental protection measures in some northern regions, which affected operations.

As expectations for the peak-season demand in the “Golden March” gradually begin to materialize, galvanizing operating rates are rising. Can downstream consumption sustain its peak-season performance going forward?

This week, ferrous metals fluctuated at highs, with raw material ore and coking products outperforming steel. Against the backdrop of the escalating conflict in the Middle East, ore and coking products held up well, supported by higher shipping costs and transmission from coal and coke as energy substitutes. In the second half of the week, supply and demand data for hot-rolled coil and rebar were released. The increase in rebar inventory slowed markedly; however, hot-rolled coil demand was lower than the same period last year, and the pace of post-holiday recovery was relatively slow, leaving steel as a whole with limited upward momentum, while futures retreated after rapid rise. In the spot market, trading in the Chinese market was average this week.....

[Consumption Expectations Were Gradually Realized, Operating Rates of Galvanising Producers Continued to Increase]: This week, the operating rate of the galvanizing industry was 59.7, up 6.69 percentage points WoW. Raw material side, zinc prices pulled back sharply this week, galvanising enterprises actively fixed prices to stockpile, and zinc ingot inventory at galvanising enterprises increased significantly.

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.

With the Chinese New Year holiday approaching, galvanized sheet plants in multiple domestic regions have successively announced their holiday shutdown plans. SMM conducted a survey on the holiday situation among galvanized sheet enterprises, covering a sample of 22 enterprises with a total annual capacity of 16.83 million mt.