The average operating rate of galvanising enterprises dropped 2.75 percentage points to 53.84%

Last week, the average operating rate of galvanising enterprises dropped 2.75 percentage points to 53.84%. Zinc prices fell last week, and downstream companies purchased at lower prices to restock for CNY holidays, growing raw material inventories. The decline in the operating rates of galvanising companies last week was driven by closures at some small galvanising companies and some medium and large galvanising companies gradually stopping production lines or reducing worker production shifts; some galvanised pipe companies sold finished product inventories due to cost considerations, lowering finished product inventories; in terms of galvanised structural parts, some companies have basically completed delivery orders scheduled before CNY, thus their production enthusiasm has decreased, weakening operating rates; it is expected that this week, more small and medium-sized galvanised companies will shut down, and the average operating rate of galvanising plants will decline further.