Operating Rate Of Galvanising Enterprises Rose Last Week

Last week, the average operating rate of galvanising enterprises rose 0.90 percentage points from the previous week to 69.39%. Raw material inventory dropped slightly as downstream enterprises mainly purchased under long-term contracts. In terms of galvanised pipes, due to the introduction of favourable policies, the price of ferrous metals rose, improving the sales of galvanised pipes. Fearing price drop for ferrous metals, galvanised pipe plants kept production and sales balanced, reducing the inventory of finished products. Due to the rise in the price of steel and zinc ingots, some galvanised pipe plants entered losses.

In terms of galvanised structural parts, galvanised steel tower companies maintained full production and will operate at capacity until October. Steel and strip steel companies operated at an 80% capacity. Other sectors did not improved noticeably. Typhoon Doksuri did not affect operating rates of galvanising factories in Guangdong, Jiangsu and Zhejiang, but the rainfalls may have a certain impact on transportation. The ‎FISU World University Games in Sichuan had no major impact on local galvanising enterprises, and only restricted the transportation to and from Chengdu. Operating rates at galvanising enterprises will rise this week.