Most environmental protection restrictions were lifted, operating rates of galvanising producers rose [SMM Galvanizing Weekly Review]

SMM November 13: This week, the operating rate of galvanising producers recorded 57.59%, up 2.45 percentage points WoW. In terms of raw material inventory, zinc prices still fluctuated at highs, downstream enterprises restocked based on rigid demand, and some large plants urged deliveries under long-term contracts, with most long-term contract deliveries for the month already arrived. Zinc ingot inventory saw a slight rebound. The reasons for the weekly operating rate increase were: last week, galvanising enterprises in the north were affected by environmental protection measures leading to some production restrictions, and steel also faced environmental protection and production restriction impacts, causing delays in raw material arrivals, which affected the operation of galvanised pipe enterprises. This week, environmental protection restrictions in the north were mostly lifted except for certain requirements remaining in areas like Shijiazhuang, reducing the impact of environmental protection on operations. Last week, environmental protection also caused issues with the arrival of ferrous raw materials. Galvanising enterprises increased operations this week to catch up on schedules. Overall demand remained relatively mediocre, weaker than the same period last year. In contrast, demand in south China was relatively robust, with orders for greenhouse pipes and transportation improving. Export orders were relatively stable overall due to tariff negotiations. Current operations are relatively stable, and the operating rate is expected to fluctuate around 57.62%.