Operating rates of galvanising plants fell

Last week, the operating rates of galvanising plants fell by 2.19 percentage points to 60.20%. Raw material inventory declined as galvanising plants lacking enthusiasm about production due to environmental protection issues reduced purchases of raw materials. The severe haze weather in the Beijing-Tianjin-Hebei region last week intensified environmental protection and production restrictions. Some small and medium-sized enterprises in Tangshan and Tianjin cut and stopped production. In terms of finished product inventory, downbeat domestic macroeconomic data last week depressed purchasing by downstream buyers and traders, weakening sales at galvansing plants. Meanwhile, haze weather resulted in closures of highways in the Beijing-Tianjin-Hebei region, hampering car transportation. As such, finished product inventories increased. In terms of galvanised structural parts, plants in south China maintained stable operating rates, and orders continued to grow. Production and orders in the north gradually shrank. The haze weather will ease this week, and the operating rates of galvanising plants may increase.