Last week, the average operating rate of galvanising enterprises dipped 1.81 percentage points to 63.86%. Zinc ingot inventories dropped. High zinc prices kept downstream producers cautious in purchasing, mainly purchasing under long-term contracts. According to SMM survey, some enterprises are currently waiting for price declines before restocking for National Day holidays.
In terms of finished product inventories, downstream traders lacked the enthusiasm for stockpiling due to pessimism over ferrous metals prices. The absence of improvement in sales increased finished product inventories, thereby lowering operating rates of galvanising plants. Some galvanised pipes plants curtailed production due to pessimism over sales. Galvanised structural parts plants kept production stable without noticeable increase in orders. Operating rates of galvanising plants are expected to stabilise this week.