SHANGHAI, Oct 19 (SMM) – An SMM survey showed that the average operating rate across Chinese galvanising plants fell 6.36 percentage points from a month ago to 93.57% in September. Nearly 31 galvanising plants were investigated, and the sample capacity of the survey stood at 10.8 million mt.
Operating rates at galvanising plants in September dropped significantly. Local large and medium-scale enterprises stopped production for 1-2 days for inspection in September due to environmental protection rectification in Daqiuzhuang, Tianjin, while most small enterprises stopped production and rectified, which had a great impact on output.
Galvanised pipe enterprises indicated that the sales pressure of finished products inventory increased significantly compared with the previous period, and the downward trend of galvanised profits affected the enthusiasm of enterprises to start construction. With the support of end-user projects, the overall orders of galvanised structural parts enterprises remain stable; Galvanised plate enterprises still have support for automobile order consumption in September, while construction sector consumption has weakened.
Operating rates of large enterprises with an annual production capacity of over 500,000 mt decreased 9.16% to 102.9%. SMM survey showed that, with the weakening of the end-user orders of galvanised pipe, the inventory pressure of finished products in large enterprises has increased, and some enterprises have sold products at low prices to reduce inventory pressure.
Operating rates of medium-sized enterprises with an annual production capacity of 100,000-500,000 mt increased 1.53% to 70.7%. SMM learned that the order support of automobile plate in galvanised plate enterprises is still strong, and the scheduled order can guarantee its production until October.
Operating rates of small enterprises with an annual production capacity of less than 100,000 mt increased 1.76% to 50.2% month on month. SMM survey showed that orders for photovoltaic and marine projects in east China increased slightly, while orders for power industry in other regions were stable, but orders for agricultural greenhouses and real estate construction industries weakened.
According to the scheduled production plan of the enterprise, it is estimated that operating rates at galvanising plants in October will be 93.85%, up 0.53 percentage points from the previous month, as some enterprises had a holiday during the National Day holidays, and the output reduced with few orders of galvanised pipe in October. North China will face the pressure of environmental protection and limited production near the heating season.