Last week, the average operating rate of galvanising enterprises rose 0.33 percentage point to 62.40%. In terms of raw material inventory, galvanising enterprises restocked at low prices, growing zinc ingot inventories. Strict environmental protection supervision for the Belt and Road Forum caused a decline in operating rates in the week ending October 22.
Last week, the impact of environmental protection gradually subsided, and most plants resumed normal production, raising the average operating rate. However, the increase in the average operating rate missed expectations as the environmental task force continued to conduct air pollution inspections in some parks in Tianjin and Tangshan issued alert over heavy air pollution, suppressing production at some galvanising plants.
Ferrous metals prices rose on the back of China’s debt issuance plan and post-disaster reconstruction, improving sales at galvanising plants. That lowered finished product inventories. In terms of galvanised structural parts, operating rates were depressed due to geographical and environmental restrictions in north China. Operating rates of galvanising plants will remain at the current level this week.
