Weak demand, galvanizing operations edge down [SMM Galvanizing Weekly Review]

SMM July 31: This week, the operating rate of the galvanizing sector was 53.39%, down 1.47 percentage points WoW. Raw material side, zinc prices continued to consolidate at highs this week, enterprise procurement remained mainly need-based, and zinc ingot inventories at galvanising enterprises continued to decline. Demand side, the galvanized pipe market saw sluggish shipments, end-user procurement was weak, and finished product inventories accumulated sharply. Affected by shipment pressure, some enterprises voluntarily cut production to digest inventories. Meanwhile, impacted by high temperatures, some enterprises reduced shifts or switched to night shifts. The overall production schedule of the sector further declined, dragging the operating rate to pull back further this week. It is expected that next week, end-use demand will still find it difficult to improve significantly, enterprises will continue to focus on destocking, and some enterprises will ramp up production and stockpile at the beginning of the month. The operating rate of the galvanizing sector will edge up to 53.56%.