The traditional peak season has arrived. How is the performance of galvanising enterprises? [SMM Analysis]

SMM, September 19: The traditional peak season, the "September-October peak season," has arrived. This week, the ferrous metals series showed a significant overall increase, initially demonstrating the power of the traditional peak season. Driven by the strength in ferrous metals, galvanising operations also improved. The specific analysis is as follows:
During the week, downstream ferrous metals enterprises replenished their inventories before the Mid-Autumn Festival, leading to a decrease in social inventories of HRC and other products. Market confidence increased, and ferrous metals prices rose. Coupled with gradually improving weather in September, downstream projects resumed operations, slightly increasing the demand for galvanising-related products. This led to an increase in downstream galvanising shipments, with some traders considering replenishing their inventories, resulting in higher shipment volumes and improved operations for galvanised pipes.
The resonance in ferrous metals prices and zinc prices caused a slight decline in the profits of galvanised pipes. However, due to the impact of upgraded environmental protection measures in the Tianjin area, some enterprises reduced or halted production. As orders flowed to other enterprises, processing fees increased, boosting the confidence of galvanising enterprises.
The issuance of special bonds in August was basically in line with expectations but still slower than the same period last year, leading to delayed demand. By mid-September, orders showed slight improvement, but galvanising enterprises still need to pay attention to the actual implementation of orders.