Jun operating rate at galvanising plants down on seasonal lull

SHANGHAI, Jul 5 (SMM) – Operating rates at galvanising plants across China decreased in June as weakening consumption grew inventories of finished products at major plants, SMM research found.

The operating rate came in at 81.16% last month, down 5.43 percentage points from a month ago and down 5.21 percentage points from a year ago.

The low season will extend to August. Further production cuts are also likely as China intensifies its environmental push.

In July, the operating rate is likely to dip 0.51 percentage point to 80.65%, SMM estimated from production plans across plants at the start of July. On a yearly basis, the rate is expected to be 2.83 percentage points lower.