Countering cut-throat competition boosts ferrous metals prices, galvanizing production sees upward momentum [SMM Weekly Galvanizing Review]

SMM July 11 News: This week, the operating rate of galvanising producers stood at 58.29%, up 1.8 percentage points WoW. In terms of raw material inventories, zinc prices pulled back to a more acceptable level for downstream players at the beginning of this week, prompting some downstream players to restock at lower prices, leading to an increase in zinc ingot inventories. The main reasons for the weekly increase in operating rates were as follows: The "anti-cut-throat competition" policy continued to boost ferrous metals prices, which kept rising. Traders' restocking sentiment picked up again, and the order volume for galvanized pipes improved somewhat. Meanwhile, enterprises that had suspended production due to heavy rainfall last week resumed normal operations, leading to an increase in the operating rates of galvanized pipe enterprises and a slight increase in finished product inventories. However, for galvanized structural parts, demand weakened during the traditional off-season, and export orders were not satisfactory. Additionally, affected by high temperatures, some enterprises reduced their operating hours or concentrated production on orders. Despite the continued strong performance of ferrous metals, there was no actual improvement in demand during the off-season. It is expected that the operating rate will continue to pull back to around 58.04% next week.

》Subscribe to view historical spot ferrous metals prices from SMM