Resumption of Work Drives Recovery, Galvanising Operating Rates Rise [SMM Galvanising Weekly Review]

SMM, July 3: This week, the operating rate of the galvanising sector was 54.56%, up 3.03 percentage points WoW. Raw material side, zinc prices rebounded this week, with downstream users mainly taking a wait-and-see stance, picking up mostly previously priced zinc ingot orders; zinc ingot inventories at galvanising enterprises edged up slightly. The rebound in operating rates was mainly due to the Dragon Boat Festival holiday last week, when some galvanising plants shut down and operating rates fell markedly, whereas operations returned to normal this week, pushing rates higher. However, with the onset of the seasonal consumption lull, extreme weather events increased, affecting end-user operations. China's galvanising demand weakened noticeably, export orders lacked bright spots, and ferrous metals prices continued to slide. End-users ordered less, finished product inventories piled up, and galvanising enterprises ran lighter daily production schedules than before, leaving operating rates not yet back to normal levels. As plant shutdowns dragged inventories lower, a slight increase in operating rates was seen, with the scheduled operating rate for next week edging up to 54.73%.