SMM

SMM December 26: The operating rate of galvanizing producers recorded 56.67% this week, up 0.59 percentage points WoW. In terms of raw material inventory, zinc prices pulled back slightly at the beginning of the week, traders cleared stock at the year-end, downstream restocking increased on price dips, and zinc ingots previously affected by environmental protection transport restrictions arrived gradually, leading to an increase in zinc ingot inventories at galvanizing enterprises. The reasons for the rise in the weekly operating rate were: environmental protection restrictions have been lifted in many regions, and enterprises in north China resumed normal production, but demand gradually weakened, with moderate sales of galvanized pipes. The galvanized round pipe market was increasingly dragged down by the real estate sector, although galvanized square pipes performed relatively well. Overall, demand for galvanized pipes weakened, and the recovery in operating rates at galvanized pipe enterprises fell short of expectations. Backlog orders accumulated due to earlier environmental restrictions on transportation were gradually shipped, and finished product inventories decreased. In south China, some projects entered a year-end rush to meet deadlines, with overall order performance moderate, and the operating performance of galvanizing enterprises in the south was relatively good. A new round of environmental protection measures in north China is expected to start on Friday, and some enterprises have holiday arrangements for New Year's Day, with the operating rate projected to drop to 55.41% next week.