SHANGHAI, Jun 13(SMM) -
The average operating rate of galvanising plants rose to 67.94% on the week last week.
Zinc prices hovered at a high level last week. Enterprises restocked at lows as required. Enterprises that took off for the Dragon Boat Festival basically resumed normal production, driving up the average operating rate of galvanised enterprises.
Although the prices of ferrous products have stabilised, the declining terminal orders have resulted in poor sales at traders amid the sluggish real estate industry, dragging down the sales of galvanised pipe enterprises and pulling up finished goods inventory.
Although orders from the State Grid have been placed, it still needs time to drive up the actual orders in the galvanising sector. Orders for iron tower stay normal overall. Conversion margins for scaffolding lacked upward momentum because of the vicious competition in the industry, and enterprises still suffered losses. Extrusion enterprises were less active in producing amid inadequate terminal orders and losses.
Although the weekly operating rates of galvanised plants improved, it was mainly driven by the increase in production days but not the improvement in actual orders. Operating rates of galvanised plants may see a limited improvement this week in the absence of actual launching of terminal projects.
