SMM November 20: This week, the operating rates of galvanising producers recorded 57.17%, down 0.42 percentage points WoW. In terms of raw material inventory, zinc prices pulled back to a more acceptable level for downstream enterprises at the beginning of the week, leading to increased spot pricing and cargo pick-up by downstream companies, resulting in a noticeable increase in zinc ingot inventory. The reasons for the weekly decline in operating rates are: entering November, demand gradually pulled back, ferrous metals prices remained relatively sluggish with mainly volatile movements, downstream traders primarily purchased based on rigid demand without stockpiling activities, overall orders were mediocre, and shipment performance fell short of expectations. To avoid excessive finished product inventories, galvanising enterprises slightly reduced operating rates. Additionally, north China continued to be intermittently affected by environmental protection measures, impacting the operation of galvanised pipe enterprises. Galvanising enterprises remain pessimistic about the market outlook. In south China, orders also experienced a relative pullback as the seasonal peak season is expected to end soon. Although there were some rush to meet deadlines for a few projects, the impact was not significant. Export orders remained relatively stable due to tariff negotiations. Operating rates are expected to continue a slight decline to 57.11% next week.
