SMM

SMM December 11: This week, the operating rate of galvanizing producers recorded 58.39%, rising slightly by 0.19 percentage points WoW. On the raw material inventory side, the zinc price center dropped back slightly at the beginning of the week, prompting downstream users to restock in small amounts, and zinc ingot inventories increased. The reasons for the weekly operating rate increase were: For galvanized pipes, some end-user projects entered a year-end rush to meet deadlines, driving up order volumes for galvanized pipes, and some enterprises increased production and finished product inventories at the beginning of the month. Demand for greenhouse pipes in south China pulled back slightly, but overall demand remained relatively robust. Overall, the operating rate for galvanized pipes rose, and finished product inventories increased. For galvanizing structural components, some steel tower orders also entered a year-end rush to meet deadlines, end-user demand for goods increased, steel tower operations improved, and export infrastructure orders continued to perform well. However, a divergence emerged between large and small plants' operating rates; small plants, affected by profit and funding pressures, operated below expectations, while large plants maintained good operations. Overall, the operating rate increased slightly. Next week's operating rate is expected to rise slightly to 57.87%.