Operating Rate Of Galvanising Enterprises Fell Last Week

Last week, the average operating rate of galvanising enterprises fell 4.01 percentage points from last week to 65.38%. Raw material inventory declined due to high zinc prices and the typhoon, affecting transportation. In terms of galvanised pipes, a combination of lower ferrous metals prices as well as transportation and production issues caused by the typhoon hampered sales, lowering operating rates and growing finished product inventory.

On the galvanised structural parts front, galvanised steel tower enterprises operated at a capacity of 90%. The overall angle steel tower processing fee dropped by about 100-200 yuan/mt. While orders have improved compared with last year, profits have shrunk. Section steel and strip steel enterprises maintained operating rates at 80%, and other sectors did not see significant improvement. Affected by the typhoon weather and the absence of improvement in downstream demand, the production enthusiasm of enterprises was suppressed, and the operating rate of the overall galvanising industry fell by 3.78 percentage points year-on-year.

According to SMM survey, 30-40% of the galvanised sheet enterprises in Boxing county, Shandong stopped production due to poor orders and poor profits. Operating rates at galvanising enterprises will rise this week as the weather improves.