SMM September 25: The operating rate of galvanising producers recorded 55.82% this week, down 2.23 percentage points WoW. On the raw material inventory side, as zinc prices pulled back, downstream players placed more point-price orders at lower levels. Zinc ingots arrived gradually, and zinc ingot inventory increased. The reasons for the lower weekly operating rate were: For galvanised pipes, ferrous metals prices remained in the doldrums at the beginning of the week. Downstream stocking sentiment was not high ahead of the National Day holiday, falling short of expectations. Overall galvanised pipe shipments were weak, finished product inventories increased significantly, and enterprises digested inventories, slightly lowering operating rates. For galvanised structural components, overall consumption improved marginally compared with August. Steel tower orders in north China gradually faced a gap, as new tenders were imminent and old tender orders were basically completed, leading to a certain gap period. However, some steel tower orders in south China gradually released volume, still performing relatively well, and most had no holiday plans for National Day. Orders for cable trays, solar panel mounting brackets, guardrails, and lamp posts remained weaker than the same period last year. Enterprises were not optimistic about orders, and many enterprises planned National Day holidays starting next week. The operating rate is expected to drop back slightly to 49.93% next week.
