At the beginning of the month, some galvanising enterprises increased production, and operating rates rose [SMM Galvanizing Weekly Review].

SMM December 4 News: The operating rate of galvanizing producers recorded 58.2% this week, rising 1.66 percentage points WoW. In terms of raw material inventory, zinc prices surged beyond expectations at the beginning of the week, leading to low downstream procurement enthusiasm, with restocking mainly driven by rigid demand, resulting in a significant decline in zinc ingot inventory. The reasons for the weekly operating rate increase were: For galvanized pipes, ferrous metals prices rose slightly and then mainly maintained a fluctuating trend, driving sales of galvanized pipe orders. Entering December, some enterprises faced pressure to meet annual sales targets, with some increasing production and finished product inventories at the start of the month. Overall demand in south China remained relatively robust, and enterprises in the south generally operated well. Overall, the operating rate for galvanized pipes increased. For galvanized structural components, steel tower orders remained resilient, but overall performance was weaker than the same period last year. In December, as the weather turned colder, procurement pace for some end-user projects in the north slowed down, and performance of northern structural components was weak, while transportation and agriculture-related projects in the south entered a rush to meet deadlines, leading to improved order performance. However, enterprises' expectations for subsequent demand weakened, and the operating rate is expected to decline slightly to 57.87% next week.