Consumption remains sluggish; operating rates of galvanising producers stay low [SMM galvanising weekly review]

SMM, September 4: This week, the operating rate of the galvanizing industry stood at 51.80%, up 0.17 percentage points WoW. On the raw material side, zinc prices continued to consolidate at highs this week. Downstream acceptance of high prices was limited, with procurement dominated by just-in-time buying amid a strong wait-and-see sentiment. Raw material inventories remained at low levels overall, with limited willingness to stockpile. On the demand side, improvement in end-use consumption remained limited. Although ferrous metals prices showed some stabilization, galvanized pipe traders mainly made just-in-time procurement, and galvanized pipe sales performance was mediocre. New orders did not show significant growth, and some enterprises still faced finished product inventory pressure. At month-end, they produced based on sales and focused on controlling finished product levels. In the structural parts segment, some steel tower orders entered the delivery phase, supporting operating rates, but new order follow-through fell short of expectations. Overall, the segment retained some resilience, and export orders for structural parts were also mediocre. The operating rate of the galvanizing industry is expected to consolidate to 51.97% next week.