Last week, the average operating rate of galvanising enterprises rose 7.43 percentage points from the previous week to 69.88%. Galvanising plants purchased raw materials as needed. Higher steel prices drove galvanised pipe plants to restock. This, together with improved sales, bolstered operating rates which reached around 90% at some plants.
On the other hand, operating rates in south China fell short of expectations due to the impact of the rainy season; in terms of galvanised structural parts, orders from photovoltaics and steel towers remained normal, and orders from scaffolding remained weak. Finished product inventory increased last week mainly due to the increase in sample production capacity.
It is expected that this week, operating rates will fall due to the Dragon Boat Festival holidays, which will prompt some small companies to close.
