Production of some early orders has commenced, with a slight increase in the operating rates of galvanising producers [SMM Galvanizing Weekly Review]

SMM, May 23: This week, the operating rates of galvanising producers reached 62.03%, up 1.08 percentage points WoW. In terms of raw material inventory, zinc prices fluctuated mainly sideways this week, with some downstream enterprises restocking slightly, leading to a slight increase in zinc ingot inventory. The main reasons for the increase in operating rates this week are as follows: For galvanized pipes, ferrous metals prices were relatively stable this week, with downstream traders restocking slightly. The overall sales situation was moderate, and the operating rates of large plants were relatively stable. However, as the rainy season began in south China, some orders for square pipes pulled back, and enterprises were not optimistic about the order situation for next week. For galvanized structural parts, orders for bridges, railways, guardrails, etc., in some regions, which were received in the previous months, just started production. Mainly affected by the end-user project timelines, the expected delivery time was postponed, leading to an increase in the operating rates of structural parts enterprises. However, the overall market orders were still weakening. It is expected that next week, a small number of enterprises plan to take 1-2 days off for the Dragon Boat Festival, and the operating rates may decline to around 60.86%.

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