Most Galvanizing Plants Resume Operations, Operating Rates Rise [SMM Galvanizing Weekly Review]

Published: Feb 14, 2025 15:09

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[Most Galvanizing Plants Resume Work, Operating Rates Rise]: This week, the operating rates of galvanising producers recorded 52.58%, an increase of 27.88 percentage points compared to pre-holiday levels. In terms of raw material inventory, zinc ingots priced by downstream enterprises before the holiday have been arriving successively, coupled with the arrival of long-term contract supplies for some enterprises, leading to an increase in zinc ingot inventory...

SMM February 14 News: This week, the operating rate of galvanising producers recorded 52.58%, an increase of 27.88 percentage points compared to pre-holiday levels. In terms of raw material inventory, zinc ingots priced before the holiday by some downstream enterprises have been arriving successively, coupled with the arrival of long-term contract shipments for some enterprises, leading to an increase in zinc ingot inventory. The main reasons for the rebound in operating rates this week are as follows: most downstream galvanising enterprises resumed operations this week, with a significant increase in operating days WoW. However, the weak performance of the ferrous market, combined with the lack of recovery in end-user demand, resulted in weak overall galvanising orders. Sales of galvanised pipes fell short of expectations, and most workers are expected to return after the Lantern Festival. Overall operating rates did not meet expectations. With transportation resuming, finished products began to be shipped out, leading to a decline in finished product inventories. For galvanised structural components, steel towers and some export orders remained relatively strong. Operating rates are expected to maintain a fluctuating trend next week, with a slight increase to around 53.39%.

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