Shipments improved at the beginning of the week, operating rates of galvanising producers rose [SMM Galvanizing Weekly Review]

SMM September 19: This week, the operating rate of galvanising producers reached 58.05%, up 1.99 percentage points WoW. In terms of raw material inventory, zinc prices pulled back, leading to more downstream point pricing at lows, but cargo pick-up was limited, resulting in a slight increase in zinc ingot inventory. The reasons for the weekly operating rate increase were: For galvanized pipes, ferrous metals prices continued to rise early in the week, prompting traders to restock appropriately. Overall, galvanized pipe sales were moderate, with finished product inventories experiencing slight destocking. Galvanized pipe enterprises increased production to replenish stocks, and some enterprises, previously affected by production restrictions or shutdowns, gradually ramped up and returned to normal production levels this week. Overall, galvanized pipe enterprises still have some expectations for pre-National Day stockpiling, and next week's production schedule is expected to increase slightly. For galvanized structural components, overall consumption showed marginal improvement compared to August. Orders for steel towers were impressive, and ship-related orders remained relatively stable. However, orders for cable trays, solar panel mounting brackets, guardrails, light poles, etc., remained weaker than the same period last year. The operating rate is expected to rebound slightly to 58.20% next week.