Operating Rates Of Galvanising Enterprises Climbed

Last week, the average operating rate of galvanising enterprises rose 1.70 percentage points from the previous week to 61.67%. Zinc prices fluctuated at a low level during the week, but as some enterprises had completed stockpiling when the zinc price was low in the previous week and were bearish, they purchased as needed last week.

The increase in raw material inventories was limited. In terms of operating rates, ferrous metals prices were weak in the first half of the week, and dealers’ purchasing pace slowed down due to the poor sales. Operating rates at enterprises were thus depressed. As ferrous metals prices rebounded in the second half of the week, orders at galvanised pipe plants increased, and their operating rates rose. In terms of galvanised structural parts, the order volume of the State Grid gradually released.

The delivery dates for the backlog of orders in Zhejiang, Anhui, Sichuan and other places approached, and the operating rates slightly improved. Scaffolding enterprises lowered processing fees due to industry competition, and enterprises were not motivated to produce due to losses. Companies related to expressways and extrusion maintained normal orders, and the overall operating rates were stable. Operating rates at galvanising plants are expected to increase slightly this week as steel prices stabilise.

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