Large Producers' Production Schedules Improve, Operating Rates of Galvanising Producers Rise [SMM Galvanizing Weekly Review]

SMM March 7 News: This week, the operating rates of galvanising producers recorded 59.55%, an increase of 2.32 percentage points WoW. In terms of raw material inventory, zinc prices rose steadily this week. Early in the week, some downstream enterprises, concerned about further price hikes, restocked at lower prices. Later, as zinc prices surged, restocking was mainly driven by rigid demand and inventory consumption, leading to a slight decline in zinc ingot inventory. The main reasons for the rebound in operating rates this week are as follows: For galvanised pipes, ferrous metals prices maintained a fluctuating trend this week. Galvanised pipe traders held relatively low inventories, and with most end-users resuming work in March, many traders, optimistic about the "Golden March and Silver April" period, began restocking. Sales of galvanised pipes were relatively strong, and galvanised pipe manufacturers, having maintained low finished product inventories after the holiday, increased production to restock finished products, resulting in a rise in finished product inventories. From Wednesday this week, regions such as Tianjin, Hebei, Henan, and Shandong implemented production restrictions based on environmental protection levels. Large enterprises were mostly unaffected, while smaller enterprises, already facing weak orders, took the opportunity to cut production, which had a relatively small impact on overall operating rates. In south China, overall orders were moderate, and consumption recovery was better than in the north. Operating rates are expected to maintain a fluctuating trend around 59.43% next week.

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