Demand Remains Weak; Galvanizing Operations Edge Down [SMM Galvanizing Weekly Review]

SMM, August 7 – The operating rate of galvanising producers was 51.95% this week, a continued WoW decline. Raw material side, zinc prices rose sharply, driving up procurement costs for galvanising enterprises. Raw material purchases remained largely need-based, and enterprises’ zinc ingot inventories stayed low. Demand side, end-use consumption still showed no significant improvement. The galvanized pipe market saw sluggish shipments, and enterprises’ orders were mediocre. To ease finished product inventory pressure, some galvanizing plants proactively slowed their production pace and trimmed production schedules. Meanwhile, persistent high temperatures recently disrupted operations at some enterprises, which adjusted shifts or switched to night production, further dragging down the sector’s operating rate. Overall, the galvanizing market remains in its demand off-season, with enterprises focusing on digesting inventories and maintaining production. Next week, the operating rate is expected to rebound slightly to 52.3% as some enterprises resume normal production pace, though it will stay low overall.