Galvanizing operation maintains fluctuating trend, with a bearish outlook on subsequent demand [SMM Galvanizing Weekly Review]

SMM June 13 News: This week, the operating rates of galvanising producers reached 60.04%, up 0.48 percentage points WoW. In terms of raw material inventories, zinc prices broke through support levels and fell to a level more acceptable to downstream buyers this week. Downstream buyers increased restocking amid the price dip, leading to an increase in zinc ingot inventories. The weekly operating rate rebounded slightly, primarily due to the following reasons: At the beginning of the week, ferrous metals prices rose, and the "rush to buy amid continuous price rise and hold back amid price downturn" behavior emerged among traders. The order volume for galvanized pipes improved, driving up the operating rates of galvanized pipe enterprises. However, as the weekend approached, ferrous metals prices declined, coupled with a slight weakening in downstream demand. Consequently, galvanized pipe orders weakened again over the weekend, and finished product inventories experienced a slight destocking. Regarding galvanized structural components, most enterprises reported a decline in demand and intense competitive pressure. TCs declined, placing significant pressure on small and medium-sized enterprises, forcing them to reduce their operating rates. This led to a polarization in operating rates between large enterprises and small and medium-sized enterprises. It is expected that the operating rate will slightly pull back to 59.81% next week.

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