Northern Production Largely Resumed, Operating Rates of Galvanizing Producers Rise [SMM Galvanizing Weekly Review]

SMM Sep. 12: This week, the operating rate of galvanising producers recorded 56.06%, up 5.98 percentage points WoW. In terms of raw material inventory, the previously priced zinc ingots were gradually picked up and delivered, coupled with the arrival of long-term contracts from large plants, zinc ingot inventory increased slightly. The weekly operating rate increase was mainly due to the gradual resumption of production by northern enterprises affected by production and transportation restrictions, mostly galvanized pipe enterprises. Previously accumulated orders were gradually shipped, and finished products experienced slight destocking. Although the traditional peak consumption season has arrived, overall consumption in the north was not ideal. Although downstream enterprises' production schedules for next week increased, they lacked much confidence in later consumption, expecting orders from end-user stockpiling before the National Day holiday. Overall consumption in east China was moderate. Orders for steel towers gradually increased as weather improved, with some enterprises' steel tower orders extendable to year-end. However, orders for structural parts such as guardrails, light poles, and profiles remained weak, improving from August but weaker than the same period last year. The operating rate is expected to rebound slightly to 56.83% next week.