SHANGHAI, Nov 5 (SMM) - Zinc ingots prices weakened this week and buyers restocked products on rigid demand. The fourth batch of government stockpiles arrived at plants.
The operating rates declined this week and some of them even suspended production for maintenance amid the worsening of Covid-19 pandemic, transportation restrictions and air quality warnings continued in Hebei Tangshan, Tianjin and surrounding areas. Steel prices continued to decline and the price spread between futures and spot prices was great. The market participants believed that spot prices will fall further. End-users held a wait-and-see outlook. Galvanised structural parts weakened. But the operating rates at galvanised pipe plants rose amid the concentrated shipments approaching the conclusion of projects. Producers are inclined to reduce finished product inventory as raw material prices continued to fall. Some companies mainly shipped finished products amid environmental protection restrictions. Therefore, the finished product inventory declined slightly. The operating rates at galvanising producers are expected to increase slightly amid the end of environmental protection restrictions.
