【Galvanized Steel Market】According to SMM, entering August, environmental-related production restrictions have continued to affect operations in some regions. In addition, most galvanized steel producers reported further weakening order books for August. As a result, domestic galvanized steel operating rates are expected to decline further this month.

【Galvanized Steel Market】According to SMM, persistent hot and rainy weather continued to weigh on outdoor construction activities across China, resulting in weak domestic galvanized steel orders throughout July. Meanwhile, anti-dumping measures and ongoing geopolitical tensions between the US and Iran continued to affect export orders, keeping domestic galvanized steel operating rates at relatively low levels during the month.

Previously, Japan has the duties that charge around 29%. But now, with the updated duties, the charge becomes 55.3% on hot-dip galvanized steel coil and strip from China & South Korea. This was announced by Japan’s trade and finance ministries to prevent domestic market. This action was triggered by Nippon Steel, Kobe Steel, and Yodoko.

The negative China-related measures taken by the US Federal Communications Commission and the US Department of Homeland Security seriously violate the important consensus reached by the two heads of state and seriously undermine China’s legitimate rights and interests. On August 5, a spokesperson for the Ministry of Commerce stated that China has no choice but to respond with necessary countermeasures, including: strengthening export controls on drones and their key parts and technologies to the US, and suspending the China Compulsory Certification

Japan's trade and finance ministries announced provisional anti-dumping duties of 29.2%-55.3% on hot-dipped galvanised steel coil, sheet and strip imports from China and South Korea, following a year-long probe triggered by a petition from Nippon Steel, Kobe Steel, and Yodoko who alleged cheap imports forced price cuts; the corrosion-resistant products are used in construction materials like guardrails, houses, fences, and appliance components, with Hong Kong and Macau imports excluded, the move adds to a string of recent Japanese trade defense actions against Asian steel and materials, including prior anti-dumping duties on nickel-based stainless cold-rolled steel and graphite electrodes from China and Taiwan.

As of July 28, LME zinc inventories (including off-warrant stocks) had fallen to 119,600 mt, down by approximately 45,000 mt from mid-June. As overseas inventories continued to decline, the LME zinc market structure shifted from contango to backwardation, with the backwardation widening further. By July 28, the LME zinc cash-to-3M spread had strengthened to US$61.09/mt.