Operating Rates of Galvanising Producers Edge Up [SMM Galvanising Weekly Review]

SMM July 17: This week, the operating rate of the galvanizing industry stood at 55.07%, up 1.56 percentage points WoW. Raw material side, zinc prices continued to consolidate at highs this week, enterprises’ purchases remained mainly need-based, and zinc ingot inventories at galvanizing enterprises edged down. Demand side, the rebound in ferrous metals prices drove sales of galvanized pipes, but end-use consumption remained mediocre, with limited order growth. This week, some galvanizing plants moderately raised production schedules by combining phased order rebounds and restocking needs, driving a slight uptick in the galvanizing operating rate. However, structural parts orders remained mediocre, and operating rates at small and medium-sized galvanizing enterprises were still average. That said, downstream demand support remained insufficient, and production enthusiasm among enterprises was limited. The galvanizing industry operating rate is expected to edge down next week.