Falling steel prices to lower operating rates at galvanising plants in Nov

SHANGHAI, Nov 15 (SMM) – Operating rates across Chinese galvanising plants averaged 84.02% in October, down 0.07 percentage point from September, SMM data showed. On a yearly basis, rates rose 4.2 percentage points after an increase of 0.2 percentage point in September.

Some galvanising plants closed for up to three days during the week-long National Day holiday on October 1, and this accounted for the decline in operating rates. High orders kept most manufactures of galvanised steel structures operating at full capacity in October, SMM learned. 

In November, the smaller environmental impact this year kept orders at highs across galvanised steel structures plants that process with supplied materials. However, some manufacturers of steel tube and pipe lowered operating rates as downstream demand started to cool in winter. Falling spot prices of steel products, as raw materials, grew the costs of manufacturers' previous stockpile, and grew losses. This also deterred those manufacturers from operating.

The average operating rate is likely to fall to 82.52% in November, standing 1.5 percentage points lower from October, and 0.46 percentage points lower from a year ago.