Operating Rate of Galvanising Enterprises Plunged

Last week, the average operating rate of galvanising enterprises dipped 8.35 percentage points to 59.77%. Raw material inventory increased slightly. Some enterprises restocked ahead of Labour Day holidays, while downstream buyers expected zinc prices to fall further.

Sluggish sales amid falling ferrous metals prices grew inventory of finished products, forcing some enterprises to halt production for 2-5 days during Labour Day holidays. Some large plants undertook maintenance, lowering overall operating rates.

In terms of galvanised structural parts, steel tower plants restocked inventories for UHV projects. It is expected that orders will pick up slightly in May. Affected by the Labour Day holidays, there is still room for galvanising operating rates to decline this week.