Last week, the average operating rate of galvanising enterprises fell 4.45 percentage points from the previous week to 65.43%. In terms of raw material inventory, dip buying increased ahead of the holidays. Some enterprises, mostly SMEs, closed for up to four days for the Dragon Boat Festival holidays.
Meanwhile, sales of galvanised pipes weakened as steel prices dropped, growing finished product inventories slightly. Downstream buying interest in south China was depressed due to the plum rain season. Increased inventories of finished products prompted producers to lower their operating rates.
On the galvanised structural parts front, transportation orders were basically from municipal projects, and payment collections were slow. The operating rates of galvanising plants are expected to rise slightly this week as producers resume normal production.
