State Grid Corporation of China Issues Tender for UHV Steel Towers, May Boost Zinc Consumption[SMM Analysis]

Against the backdrop of the construction of a new-type power system, in order to effectively support the construction of large-scale wind and PV power bases in deserts, gobi deserts, and wastelands, and to facilitate and promote the intensive development and long-distance transmission of large-scale power supply bases, the construction of ultra-high voltage (UHV) projects is expected to continue advancing. The State Grid Corporation of China recently issued a tender announcement for the centralized procurement of steel towers for the 15th batch of UHV projects in 2025, with a total steel tower scale of 568,000 mt and conductor rail devices totaling 631,000 meters. The hot-dip galvanizing process, a core anti-corrosion technology for transmission steel towers, is expected to drive an increase in zinc ingot consumption, attracting significant attention within the zinc industry chain.

By 2025, the total tender volume for UHV steel tower projects announced by State Grid had reached 991,000 mt, while the tender volume for regular steel towers reached 763,000 mt, totaling 1.757 million mt. The tender volume for UHV projects far exceeded the 460,000 mt of steel tower tenders announced by State Grid in 2024. According to SMM calculations, based on an average galvanizing layer thickness of 86μm and a zinc adhesion amount of 600g/㎡ for steel towers, the zinc consumption for galvanizing per mt of steel tower is approximately 35kg. Therefore, the zinc demand corresponding to the 1.757 million mt tender volume is around 61,000 mt.

According to SMM statistics, approximately 27-32 new outbound DC transmission channels are expected to be added during the 14th and 15th Five-Year Plan periods, with 4 existing lines, 5 under construction, and a shortage of 18-23 lines. Currently, 23 DC projects are being advanced (including scientific research, feasibility studies, approvals, and construction), and there is still potential for additional UHV line planning in the future, with the total scale expected to support the high growth of UHV construction during the 15th Five-Year Plan period. It is expected that UHV orders will continue to be released in 2025, driving zinc consumption growth.