The Operating Rates of Galvanising Producers Increased Slightly in February. How Did the Operating Rates Perform Across Different Regions? [SMM Analysis]

Published: Mar 12, 2025 14:37

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【Operating Rates of Galvanising Producers Increased Slightly in February: How Did Operating Rates Perform Across Regions?】The overall operating rate of galvanizing increased in February, but the operating rates in east China, north China, and south China showed mixed performance. What are the reasons?

SMM March 12 News:

In February, the overall operating rate of galvanizing increased, but the operating rates in east China, north China, and south China showed mixed performance. What are the reasons?

In February, the operating rate in north China rebounded. North China mainly produces galvanized pipes. Although the resumption progress of infrastructure projects after the holiday was relatively slow, in the first two months of 2025, a total of 1.86 trillion yuan of local government bonds were issued nationwide, a significant increase compared to the same period last year, with the issuance pace clearly advanced. However, it still takes time to translate into tangible results. Before the holiday, galvanized pipe traders, concerned about tariff issues, did not stockpile in large quantities. After the holiday, ferrous metals prices remained stable, and restocking was carried out at an appropriate time. Although the resumption of end-user operations was slow, the sales of galvanized pipes were relatively stable, and the operating performance of galvanized pipe enterprises was good, driving the overall operating rate in north China upward.

In February, the operating rate in east China declined. Galvanizing plants in east China mainly produce structural components, but most enterprises in this region are small and medium-sized, with generally later start times, mostly after the Lantern Festival. The number of operating days decreased compared to before the holiday, and some enterprises conducted maintenance after the holiday, delaying production in February and dragging down the operating rate. In terms of orders, steel tower enterprises performed better compared to other orders, but most were pre-holiday orders, and new orders after the holiday still require time. The "rush for exports" situation essentially ended after the holiday. Overall, the operating rate in east China declined.

In February, the operating rate in south China increased, mainly due to favorable temperatures and less rainfall in the region. Downstream enterprises, concerned about the impact of the rainy season in March on transportation, increased their demand. Additionally, agricultural pipe orders remained strong, boosting production enthusiasm and driving the operating rate upward.

Looking ahead to March, downstream enterprises still have certain expectations for March consumption. With higher production schedules planned by enterprises, the operating rates in various regions are expected to increase overall in March.

(The above information is based on market data collection and comprehensive evaluation by the SMM research team. The information provided in this article is for reference only and does not constitute direct investment research advice. Clients should make prudent decisions and not replace independent judgment with this information. Any decisions made by clients are unrelated to SMM.)

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