The Operating Rates at Galvanising Plants Declined Again amid Extreme Weather and Falling Steel Prices

SHANGHAI, Nov 15 (SMM) - Downstream producers restocked on rigid demand amid rising zinc ingot prices and mainly consumed inventory. Although environmental protection restriction ended early last week, the cold air and snowstorm in north China has brought production and transportation restrictions.

Some producers even suspended production for 2 days. Meanwhile, end-users held a wait-and-see outlook amid falling steel prices. Producers have to reduce the output amid muted sales and high finished product inventory. The orders for steel tower were modest amid the concentrated deliveries of some projects, but orders for street light poles and scaffold weakened amid delays of projects. Companies mainly consumed finished product inventory due to falling raw materials prices and market panic. The operating rates are expected to keep low as the market is unlikely to improve and the sales are sluggish.