Ferrous metals prices continue to rise, and galvanizing production capacity utilization rate increases slightly [SMM Weekly Galvanizing Review]

SMM News on July 24: This week, the operating rate of galvanising producers stood at 59.42%, up 0.29 percentage points WoW. In terms of raw material inventories, zinc prices fluctuated at highs this week, reaching a level that was difficult for downstream users to accept. There was a small amount of restocking driven by rigid demand, leading to a decrease in zinc ingot inventories. The main reasons for the weekly increase in operating rates were as follows: Ferrous metals prices continued to rise, and traders continued to restock, with sales remaining good. Galvanized pipe enterprises were not optimistic about the subsequent prices and demand, so they focused on digesting inventories and realizing profits. Finished product inventories decreased significantly. Some enterprises slightly increased their operating rates to replenish inventories, while others were concerned about a potential pullback in ferrous metals prices and did not have excessive production plans. The planned operating rate for next week is expected to pull back slightly. For galvanized structural parts, except for the relatively resilient orders for steel towers, orders for guardrails, lamp posts, and solar panel mounting brackets remained weak. It is expected that the operating rate will pull back to around 58.29% next week.