Operating rates of galvanising producers consolidate [SMM Galvanizing Weekly Review]

SMM August 21: This week, the operating rate of the galvanising industry was 53.26%, up 0.64 percentage points WoW. On the raw material side, zinc prices pulled back slightly this week, and some galvanising enterprises made purchases at lower levels. However, as zinc ingots have not yet arrived at plants, current raw material inventory remains at a relatively low level. On the demand side, the improvement in end-use consumption remained limited, sales of galvanised pipes were moderate, new orders were not outstanding, and finished product inventories still increased to some extent. As the impact of previous typhoons gradually weakened, some enterprises resumed normal production, driving the operating rate to rebound. Meanwhile, some enterprises increased their production schedules actively to replenish finished product inventories, providing some support to operations. However, the current consumption-side capacity remains weak, and the increase in output is relatively limited. The overall operating rate is still weak YoY. The operating rate of the galvanising industry is expected to rebound slightly to 53.93% next week.