The traditional peak season has arrived. How is the performance of galvanising enterprises? [SMM Analysis]

Published: Sep 19, 2024 11:44 (GMT+8)
Source: SMM
SMM, September 19: The traditional peak season, the "September-October peak season," has arrived. This week, the ferrous metals series showed a significant overall increase, initially demonstrating the power of the traditional peak season.

SMM, September 19: The traditional peak season, the "September-October peak season," has arrived. This week, the ferrous metals series showed a significant overall increase, initially demonstrating the power of the traditional peak season. Driven by the strength in ferrous metals, galvanising operations also improved. The specific analysis is as follows:
During the week, downstream ferrous metals enterprises replenished their inventories before the Mid-Autumn Festival, leading to a decrease in social inventories of HRC and other products. Market confidence increased, and ferrous metals prices rose. Coupled with gradually improving weather in September, downstream projects resumed operations, slightly increasing the demand for galvanising-related products. This led to an increase in downstream galvanising shipments, with some traders considering replenishing their inventories, resulting in higher shipment volumes and improved operations for galvanised pipes.
The resonance in ferrous metals prices and zinc prices caused a slight decline in the profits of galvanised pipes. However, due to the impact of upgraded environmental protection measures in the Tianjin area, some enterprises reduced or halted production. As orders flowed to other enterprises, processing fees increased, boosting the confidence of galvanising enterprises.
The issuance of special bonds in August was basically in line with expectations but still slower than the same period last year, leading to delayed demand. By mid-September, orders showed slight improvement, but galvanising enterprises still need to pay attention to the actual implementation of orders.

Data Source Statement: Except for publicly available information, all other data are processed by SMM based on publicly available information, market communication, and relying on SMM's internal database model. They are for reference only and do not constitute decision-making recommendations.

For any inquiries or for more information, please contact: lemonzhao@smm.cn
For more information on how to access our research reports, please contact:service.en@smm.cn
Related News
【Flash | Lumentum Commits $87 Million to Secure AXT’s InP Wafer Capacity Through 2031】
5 hours ago
【Flash | Lumentum Commits $87 Million to Secure AXT’s InP Wafer Capacity Through 2031】
Read More
【Flash | Lumentum Commits $87 Million to Secure AXT’s InP Wafer Capacity Through 2031】
【Flash | Lumentum Commits $87 Million to Secure AXT’s InP Wafer Capacity Through 2031】
AXT and Lumentum signed a binding capacity reservation agreement for Indium Phosphide (InP) wafer substrates through December 31, 2031. AXT will reserve minimum annual product capacity and support additional capacity, while Lumentum will provide two $43.5 million deposits, totaling $87 million, to be applied as shipment credits. Lumentum is liable for annual purchase shortfalls, subject to specified exceptions, while AXT’s failure to deliver minimum capacity constitutes a material breach. SMM views the six-year commitment as a firm demand signal for InP substrates and high-purity indium. Wafer volumes, diameter mix and corresponding indium consumption were not disclosed.
5 hours ago
【SMM Flash News】Benton Acquires Land Near Dominion and Advances Lead-Zinc VMS Exploration
7 hours ago
【SMM Flash News】Benton Acquires Land Near Dominion and Advances Lead-Zinc VMS Exploration
Read More
【SMM Flash News】Benton Acquires Land Near Dominion and Advances Lead-Zinc VMS Exploration
【SMM Flash News】Benton Acquires Land Near Dominion and Advances Lead-Zinc VMS Exploration
Benton Resources announced on October 5, 2026 that it had signed an agreement with Quest Inc. to acquire six mineral claim units contiguous with its Dominion project in Newfoundland. Subject to exchange approval, Benton will pay C$20,000 in cash and issue 400,000 shares. The vendors will retain a 2.5% net smelter return royalty, with Benton holding the right to buy back 1.5% for C$1.5 million. A C$6,000 annual payment will begin 48 months after signing. The parcel lies about 600 metres along strike from surface samples grading up to 10.8 g/t gold, while 159 channel-sample results remain pending. Dominion also hosts volcanogenic massive-sulphide areas including Ellie and Trinity. Benton previously reported a 0.5-metre Ellie channel sample grading 10.60% zinc, 3.14% lead, 0.83% copper and 45.10 g/t silver, and a 2.0-metre Trinity sample grading 1.47% zinc, 0.32% lead, 0.08% copper and 10.72 g/t silver.
7 hours ago
【Flash | Semtech Adds Cleanroom Space as InP Photonics Demand Ramps】
8 hours ago
【Flash | Semtech Adds Cleanroom Space as InP Photonics Demand Ramps】
Read More
【Flash | Semtech Adds Cleanroom Space as InP Photonics Demand Ramps】
【Flash | Semtech Adds Cleanroom Space as InP Photonics Demand Ramps】
Semtech said in its Aug. 25 earnings presentation that its data-center photonics portfolio spans gain chips, high-power CW lasers, SOAs and high-speed photodiodes, while it has secured FY2027 equipment deliveries and acquired additional cleanroom space. Semtech acquired HieFo in March, adding US-based InP gain-chip and DFB-laser manufacturing. Q2 FY2027 data-center sales reached $100 million, up 39% QoQ and 91% YoY; Q3 sales are targeted to rise 45% QoQ and 160% YoY. SMM believes the buildout supports medium-term demand for InP and high-purity indium, although no nameplate capacity or indium consumption was disclosed.
8 hours ago