SMM, December 27: This week, the operating rate of galvanizing producers recorded 62.48%, down 1.33 percentage points WoW. In terms of raw material inventories, although zinc prices fluctuated at high levels this week, a significant amount of previously priced zinc ingots from downstream sectors arrived successively, along with the gradual arrival of long-term contracts, leading to a noticeable rebound in raw material inventories. The weekly operating rate declined slightly, mainly due to the following reasons: First, as the weather turned colder and the Chinese New Year approached, terminal projects gradually wrapped up and went on holiday, resulting in a seasonal weakening of demand for galvanized pipes. Orders for galvanized pipes pulled back, and shipment volumes dropped significantly, leading to an accumulation of finished product inventories at pipe factories. Additionally, pipe factories, anticipating a further weakening in demand, reduced operations to avoid excessive inventory buildup. Second, regarding structural component orders, as the year-end State Grid delivery deadline approached and construction activities gradually ceased, orders for steel towers pulled back, along with orders for guardrails, lamp rods, and other products. Some enterprises also limited production considering year-end payment settlements. Meanwhile, export orders for certain structural components remained moderate. The operating rate is expected to continue declining next week.
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