SMM reported on January 10: This week, the operating rate of galvanizing producers was 53.72%, down 5 percentage points WoW. In terms of raw material inventory, zinc prices pulled back this week, reaching the psychological price level for pre-holiday stockpiling by some enterprises, prompting purchases. Combined with the arrival of long-term contract shipments, overall raw material inventories increased. The main reasons for the decline in operating rates this week were: galvanizing plants in north China gradually entered the Chinese New Year break, leading to reduced operations; additionally, ferrous metals prices pulled back significantly this week, end-use demand was weak, and sales of galvanized pipes dropped sharply. To avoid excessive finished product inventories, pipe factories reduced operations, resulting in a noticeable accumulation of finished product inventories. Large pipe factories were particularly affected. In south China, where enterprises mainly produce structural components, steel tower orders remained resilient, and export orders for structural components were still strong. Operating rates of galvanizing plants in south China were better than those in the north. With more enterprises expected to take a break next week, operating rates will continue to decline.
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