SMM

Entering the traditional peak season, the ferrous metals market performed well, showing seasonal improvement. At the same time, favorable national policies provided a boost, and the galvanizing operating situation also improved. So, how did it perform in different regions?

In September, the operating rate in south China increased significantly, mainly driven by the rise in ferrous metals prices. Due to low previous inventory levels among downstream traders in south China, there was a "rush to purchase amid continuous price rise" behavior, leading to restocking. Additionally, reduced rainfall in September allowed projects to gradually resume construction, further boosting the operating rate.

In September, the overall operating rate in north China increased significantly. North China mainly produces galvanized pipes and is significantly affected by the price trends of ferrous metals. In September, ferrous metals prices continued to rise, and traders were optimistic about future trends, leading to substantial restocking. The shipments from galvanizing plants improved noticeably, and there was optimism about future orders, driving the overall operating rate in north China upward.

In September, the operating rate in east China slightly declined. Galvanizing plants in east China mainly produce structural components. Previously, steel tower companies performed well, maintaining a high operating rate. However, after entering September, the rise in zinc prices intensified competition among companies, making it difficult to increase processing fees, which tended to decrease. Some companies began to reduce production due to cost considerations, leading to a decline in the overall operating rate.

Entering October, affected by the National Day holiday, most companies chose to take a 2 to 7-day break, impacting production progress. Meanwhile, the gradually cooling weather in north China may also affect operating conditions. It is expected that the operating rates in these three regions will see a slight decline in October.