The galvanizing operating rate decreased by 1.79 percentage points week-on-week to 68.50%. In terms of raw material inventory, zinc prices remained stable and downstream enterprises maintained just-in-time procurement as the main strategy. Zinc ingot inventory remained relatively stable. As for galvanized pipes, due to the fluctuation in prices of black products, the operating rate of galvanized pipe enterprises remained at around 80%.
However, in Guangdong region, production and sales were restricted due to the impact of typhoons, leading to a slight decline in the operating rate of galvanized pipe enterprises.
In the galvanized structural components sector, the operating rate of sectors such as profile steel, strip steel, and iron towers remained at a decent level, with approximately 80% operating rate. The other sectors did not show significant improvement, and the operating rate remained at around 50%. Additionally, it is understood that Tangshan, Hebei Province, has been affected by environmental protection policies, resulting in production restrictions for steel mills. However, the impact on the galvanizing industry is relatively small. Overall, although the galvanizing industry's YoY operating rate increased by 0.28 percentage points compared to last year, processing fees decreased by 10%-20% overall, leading to squeezed profit margins for enterprises. It is expected that the operating rate of galvanizing enterprises will remain stable this week.
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