SMM Oct. 24: This week, the operating rate of galvanising producers was 57.48%, down 0.57 percentage points WoW. In terms of raw material inventory, zinc prices continued to rise this week, prompting downstream enterprises to cautiously consume existing stocks due to high prices, leading to a decrease in zinc ingot inventory. The reasons for the weekly decline in operating rates were: overall October consumption fell short of expectations, ferrous metals prices remained lukewarm, downstream pipe traders mainly purchased based on rigid demand without stockpiling, overall sales of galvanized pipes were weak, enterprise finished product inventories increased, production cuts were implemented to prevent excessive inventory buildup, and finished product inventories increased slightly. Going forward, enterprises still plan to reduce operating rates to prevent inventory accumulation. For galvanized structural components, orders for guardrails and solar panel mounting brackets improved, while some steel tower orders experienced a slight pullback in certain regions due to a gap period. The operating rate is expected to drop back slightly to 56.44% next week.
