Operating Rates of Galvanising Producers Continued to Fall amid the Weak Terminal Consumption

SHANGHAI, July 15 (SMM) - Operating rates at galvanising producers fell to 58.53% on the week. The zinc prices fell below 22,000 yuan/mt within the week, and downstream companies purchased on dips. This week, ferrous metals prices continued to drop. The poor sales of galvanized pipe and the increasing inventory of finished products forced the enterprises to reduce the production. In addition, affected by the high temperature, galvanising producers basically scheduled the production based on the sales, and intended to reduce the production. Affected by the high temperature and power rationing, the operating rates of some places in SIchuan were limited. As the overall terminal consumption did not improve, some small and medium-sized enterprises suspended the production amid the negative sentiment. The operating rates at galvanising producers are likely to remain low last week as the steel prices may decline further.