SMM Analysis Of Operating Rates Of Galvanising Producers In April

SHANGHAI, May 15 (SMM) - The operating rates of galvanising producers in SMM’s new survey sample averaged 59.38% in April, down 4.14 percentage points MoM, but up 11 percentage points YoY. The new sample covered a total capacity of 39.02 million mt, and the output of producers in the sample totalled 1.93 million mt.

Losses drove producers to cut or halt production. The Qingming Festival also contributed to lower operating rates. Continuously falling steel prices deterred end users from placing orders, causing galvanised pipe producers' inventories to pile up and dampening their production enthusiasm. In terms of galvanised structural parts, orders for scaffold barely improved, while orders from PV and greenhouse farming sectors were largely stable. Demand from iron tower companies picked up a little towards the end of the month.