Fair weather drives operating rates across zinc galvanisers in Apr

SHANGHAI, May 18 (SMM) – Operating rates across China's zinc galvanising plants in April gained 19.29 percentage points on the month and stood at 86.1%, SMM surveyed. This is up 19.16 percentage points on the year. 

Most galvanising plants in north China cut production for environmental inspections in April 2017, and this accounted for the significant year on year increase in operating rates. During this closure, the plants undertook technological overhaul in acid polluting and wastewater treatment. They resumed regular operations in May 2017.

Growing orders in the high season and minimal impact from environmental measures in April this year also accounted for the growth in operating rates month on month. 

Zinc galvanising plants in Jiangsu province faced production restrictions from environmental probes in the second half of April, and SMM believes that this is likely to weigh on operating rates in May.

As the traditional high season for the galvanising industry ends in May and as in-plant inventories of finished products grow, production enthusiasm across galvanising plants is likely to be tapered.

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