Consumption Weakens, Operating Rates of Galvanising Producers Poor [SMM Galvanising Weekly Review]

SMM June 12: This week, the operating rate of the galvanizing industry was 58.33%, down 1.49 percentage points WoW. On the raw material side, zinc prices fluctuated at highs this week, and downstream buyers restocked on dips for rigid demand, mainly digesting inventories. Zinc ingot inventories at galvanizing enterprises declined significantly. The drop in operating rate was mainly due to intensified industry competition and weak demand, with galvanizing enterprises generally facing production losses, which reduced their willingness to operate. Small and medium-sized enterprises were hit particularly hard, with some already reducing production shifts or even suspending production and taking holidays. Meanwhile, large plants implemented weekend holidays to address high finished product inventories caused by sluggish shipments, which had a notable impact on operating rates. Consumption remained lackluster, and the operating rate next week is expected to edge down to around 57.38%.