Operating Rates of Galvanising Plants Increased with Stable Steel Prices

SHANGHAI, Jul 25 (SMM) - Last week, the average operating rate of galvanising plants climbed to 68.22% from a week ago. Companies only restocked on rigid demand amid high zinc prices. As steel prices stopped falling and stabilized, the terminal enterprises ramped up the restocking, which led to a growth in the operating rates of the galvanized pipe plants in north China. In addition, some large plants that had suspended the production before resumed the production, contributing to the increase in operating rates. On the whole, operating rates of galvanising plants were still low, mainly because the terminal consumption was yet to improve. At the same time, although the overall prices of steel and zinc ingots dropped and the profits of enterprises improved, the inventory of finished products was still high and the profits were thin. Therefore, the enterprises mainly consumed their finished products. In terms of galvanised structural parts, plants are more optimistic about the future demand for photovoltaic brackets, which was an emerging infrastructure industry and the current consumption of which is also acceptable. Operating rates of the galvanising plants are expected to grow slightly this week.