Ferrous metals prices continue to be boosted, with galvanizing operating rates fluctuating upward [SMM Weekly Galvanizing Review]

SMM News on July 18: This week, the operating rate of galvanising producers was recorded at 59.12%, an increase of 0.84 percentage points WoW. In terms of raw material inventories, zinc prices pulled back to a more acceptable level for downstream buyers at the beginning of this week, prompting some downstream buyers to restock at lower prices. Additionally, the arrival of some long-term contract zinc ingots led to an increase in zinc ingot inventories. The main reason for the weekly increase in operating rates was the continued fermentation of "anti-rat race" expectations, which boosted ferrous metals prices. Ferrous metals prices continued to rise, reigniting traders' restocking sentiment and improving cargo turnover. This increased the production enthusiasm of galvanized pipe enterprises. However, as it was still the off-season, there was no actual increase in demand. After galvanized pipes followed the price increase of ferrous metals, downstream purchase willingness was low, and cargo turnover was poor in the later period. Enterprises reduced their production schedules for the next week, and finished product inventories increased. For galvanized structural parts, some small enterprises were affected by poor demand and suspended production for holidays. Steel tower enterprises performed moderately well and remained resilient. There was a significant polarization in operating rates between large and small enterprises. It is expected that the operating rate will pull back to around 58.79% next week.