SMM Oct. 17: This week, the operating rate of galvanising producers recorded 58.05%, up 11.21 percentage points WoW. On the raw material inventory side, although zinc prices pulled back, downstream users had previously made more purchases at low prices and mainly consumed inventories, leading to a decrease in zinc ingot inventories. The reasons for the increase in the weekly operating rate were: most galvanising enterprises took holidays during the National Day last week, and this week they all resumed normal production, resulting in a significant rise in the operating rate. For galvanized pipes, ferrous metals prices continued to pull back this week, and overall order shipments were not ideal. However, due to transportation issues during the National Day holiday, some orders were delayed and shipments continued this week, resulting in a slight destocking of finished product inventories. Galvanized pipe enterprises increased operating rates to replenish inventories. For galvanized structural components, overall consumption improved compared with September, with some infrastructure construction rushing to meet deadlines. Orders for guardrails and solar panel mounting brackets improved, while some steel tower orders were basically completed in September. As new tenders started in October, there might be a certain gap period, and order performance dropped back slightly. The operating rate is expected to fluctuate slightly at 58.8% next week.
