Operating rates of galvanizing producers edge down [SMM Galvanizing Weekly Review]

SMM July 24: The operating rate of the galvanizing industry this week was 54.86%, down 0.21 percentage points WoW. Raw material side, zinc prices continued to consolidate at highs this week, coupled with weak consumption, and enterprise procurement remained mainly on a just-in-time basis, with galvanising enterprises' zinc ingot inventories continuing to decline. Demand side, ferrous metal prices weakened this week, dampening end-user procurement sentiment, consumption was moderate, and new orders for galvanising enterprises were insufficient. Additionally, heavy rainfall in the north affected product transportation, causing a slight accumulation of finished product inventories at some enterprises. Under the dual pressure of weak orders and rising finished product inventories, production enthusiasm among enterprises pulled back, and the industry operating rate edged down WoW. End-use demand is expected to remain lacklustre next week, with enterprises mainly producing to order, and the galvanizing industry operating rate will edge down further to 54.62%.