Did Galvanizers Hurt as China Moves to Boost Environmental Protection? SMM Reports

Published: Dec 12, 2016 12:01
China stepped up environmental protection inspections recently. For the galvanizing industry, the Daqiu Village Industry Park in Jinghai District, Tianjin bore the brunt after the Zhasan Iron and Stee

SHANGHAI, Dec. 12 (SMM) - China stepped up environmental protection inspections recently. For the galvanizing industry, the Daqiu Village Industry Park in Jinghai District, Tianjin bore the brunt after the Zhasan Iron and Steel was publicly criticized.

SMM understands local galvanizers slashed or suspended production after the entry of central government environmental protection team.

Some producers were forced to cut output by 20% against early warning signal, SMM said. A few that failed to meet environmental protection requirements were shut down.

The Daqiu Village has over 100 galvanizers there which consume around 500,000 tonnes of zinc each year. Of these producers, some have been closed during environmental protection inspections over years past. So only a limited number of plants were actually shut down during recent inspections, SMM said. Plants that cut or cease production will return to production after early warning signals are canceled. Zinc consumption in Tianjin will fall about 1/4 in the near term due to environmental protection inspections.

For news cooperation, please contact us by email: sallyzhang@smm.cn or service.en@smm.cn. 

Data Source Statement: Except for publicly available information, all other data are processed by SMM based on publicly available information, market communication, and relying on SMM's internal database model. They are for reference only and do not constitute decision-making recommendations.

For any inquiries or for more information, please contact: lemonzhao@smm.cn
For more information on how to access our research reports, please contact:service.en@smm.cn
Related News
SHFE Zinc Prices Rise, But Downstream Demand Weak Amid Seasonal Slowdown
Jul 10, 2026 18:17
SHFE Zinc Prices Rise, But Downstream Demand Weak Amid Seasonal Slowdown
Read More
SHFE Zinc Prices Rise, But Downstream Demand Weak Amid Seasonal Slowdown
SHFE Zinc Prices Rise, But Downstream Demand Weak Amid Seasonal Slowdown
[Shanghai Refined Zinc Market] SHFE zinc prices rose notably this week compared with the previous week. However, downstream demand remained weak amid the seasonal slowdown, with buyers continuing to procure only on an as-needed basis. Spot market transactions were generally sluggish, although traders maintained relatively firm quotations. Overall, spot premiums fluctuated at low levels during the week.
Jul 10, 2026 18:17
Depressed Zinc Concentrate Offers Squeeze Smelter Margins, Dampen Trading Activity
Jul 10, 2026 18:17
Depressed Zinc Concentrate Offers Squeeze Smelter Margins, Dampen Trading Activity
Read More
Depressed Zinc Concentrate Offers Squeeze Smelter Margins, Dampen Trading Activity
Depressed Zinc Concentrate Offers Squeeze Smelter Margins, Dampen Trading Activity
[Imported Zinc Concentrate Market] This week, traders maintained import zinc concentrate offers at depressed levels, with most quotations remaining in negative triple-digit territory. However, the continued decline in both domestic and international TCs further squeezed smelter margins, leaving Chinese smelters reluctant to accept imported concentrate priced at negative triple-digit TCs. Consequently, trading activity in the imported zinc concentrate market remained subdued throughout the week.
Jul 10, 2026 18:17
Chinese Zinc Concentrate Treatment Charges Decline in July Amid Weak Price Ratio
Jul 10, 2026 18:17
Chinese Zinc Concentrate Treatment Charges Decline in July Amid Weak Price Ratio
Read More
Chinese Zinc Concentrate Treatment Charges Decline in July Amid Weak Price Ratio
Chinese Zinc Concentrate Treatment Charges Decline in July Amid Weak Price Ratio
[Domestic Zinc Concentrate Market]This week, domestic zinc concentrate treatment charges (TCs) across multiple regions in China were gradually finalized, with July TCs continuing to decline from June levels. The primary driver behind the latest reduction was the persistently weak domestic-to-overseas price ratio, which pushed losses on imported zinc concentrate to nearly RMB 2,000/mt once again. As a result, Chinese smelters continued to prioritize purchases of domestic zinc concentrate in July, keeping the domestic concentrate market in a tight supply-demand balance.
Jul 10, 2026 18:17