The average operating rate of galvanising plants dropped to 60.01% last week. Zinc prices fell last week and enterprises restocked at lows.

Prices of ferrous products continued to fall last week, and galvanised pipe market reduced their purchase. And there were more production lines suspending and reducing the production due to the poor sales.

Some large factories suspended the production over the weekend and mainly consumed finished goods inventory.

In terms of the terminal, the temperature was high in most central and eastern regions of China last week, while the south and south-west China suffered heavy rainfall, leading to the suspension of the terminal outdoor construction projects and the decrease in purchases.

Transportation orders were about to be delivered, so the operating rates of galvanised structural parts producers rose, while orders in other sectors remained weak with no significant improvement.

Operating rates of galvanising companies are expected to remain weak if the prices of ferrous products do not stabilise this week.

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