Galvanising enterprises resume normal operations after the holiday, with operating rates of galvanising producers on the rise [SMM Galvanizing Weekly Review]

SMM, June 6: 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. The main reason for the increase in operating rates this week was that the previous weekend coincided with the Dragon Boat Festival holiday, with most enterprises arranging holidays lasting 1-2 days and a few taking 3 days off, which affected production. This week, production resumed normally, resulting in an increase in the operating rate. For galvanized pipes, ferrous metals prices continued to be in the doldrums this week, and the sales of galvanized pipes were not satisfactory. However, during the holiday, enterprises mainly consumed their inventories, leading to a decrease in finished product inventories. Regarding galvanized structural parts, most enterprises reported a decline in demand and intense competition, resulting in a decrease in TCs and poor profits, forcing enterprises to cut production or extend their holidays. It is expected that next week, production will operate normally, and the operating rate may rebound to around 60.17%.

》Subscribe to view SMM's historical spot metal prices