Northern Environmental Protection Measures Resumed, Galvanizing Operating Rates Declined Slightly [SMM Galvanizing Weekly Review]

SMM News, March 27: This week, the operating rate of the galvanizing industry was 58.88%, down slightly by 0.81 percentage points WoW. Raw material side, zinc prices rebounded this week, and downstream buyers picked up fewer goods, with consumption mainly driven by existing inventory. However, zinc ingots previously price-fixed by galvanising enterprises arrived one after another, and zinc ingot inventory at galvanising enterprises declined slightly. The lower operating rate was mainly due to the renewed environmental protection measures in some northern regions, which affected operations. By segment, ferrous metals prices remained relatively firm, galvanised pipe traders continued to restock, galvanising enterprises had solid orders, shipments moved smoothly, and finished product inventories declined. As for structural parts, steel tower orders remained relatively robust at present, though most were orders placed before the Chinese New Year. Subsequent tenders will gradually begin, and steel tower orders are expected to remain stable. Some export orders for transportation, steel towers, and sections also continued to perform well. Overall consumption was in line with expectations for the traditional peak season, but environmental protection measures will still have an impact next week, and the operating rate is expected to edge down slightly to around 58.13% next week.