Galvanized zinc orders weakened further, companies faced greater pressure from finished product inventories

SHANGHAI, Apr 29 (SMM) – Galvanized zinc orders weakened. Producers restocked aggressively as zinc prices fell in the second half of last week. But delivery was slightly delayed. Demand from end-users at galvanised zinc pipe plants declined amid high prices of steel. Most companies have reduced production, but pressure of finished products inventory remained sharp. On galvanised zinc structural parts, steel tower orders diverged slightly in north and south China amid high cost. Orders for steel tower in north China thinned while stabilised in Jiangsu, Jiangxi, Anhui and other places. Scaffolding processing fees continued to fall, and profits were even lower than the processing fee. Small and medium-sized enterprises have suspended production.

Refrigeration orders have been relatively stable, while photovoltaic orders have not yet seen a significant improvement. Major plants remained normal production in approaching the holiday while small and medium-sized enterprises have holiday plans amid muted orders. Operating rates are expected to weaken slightly.