China Action Hurts Galvanizers in Tianjin and Hebei

Published: May 02, 2017 18:21 (GMT+8)
Galvanizers in North China were greatly impacted by environmental protection inspections from April 20.

SHANGHAI, May. 2 (SMM) – Galvanizers in North China were greatly impacted by environmental protection inspections from April 20.

Central Environmental Protection Team ordered all acid-related producers in Jinghai District, Tianjin cease production from May 1. Most local galvanizers were forced to shut down.

China closed all galvanizers in Bazhou City, Hebei Province for environmental protection assessment from April 20, SMM reported. The environmental protection assessment will last for one month, majorly covering galvanized tube/pipe and galvanized sheet plants. About 10,000 tonnes per month of local zinc consumption will be affected.

Environmental protection drive in the two regions will affect about 50,000 tonnes of zinc utilization per month, SMM said.

SMM understands production at some galvanizers in Jinghai District had been restricted in mid-April. Daqiu Village was significantly affected. All acid-related producers in Jinghai District, Tianjin were required to cease production in May. Impact from this round of environmental protection will last until after the Belt & Road Forum. Those that met environmental protection requirements will be re-checked, restricting their output. About 200 local galvanizing lines will be affected, whose monthly zinc consumption total 40,000-50,000 tonnes per month.

When they will restart is still indeterminate. Handan and Cangzhou have yet to be affected.

Some galvanizers have passed environmental protection inspections, but will also be affected since all acid-related plants are forced to shut down, SMM said. Besides, pickled coils supply in Beijing, Tianjin and Hebei was limited. This, combined with restrictions on sulfuric acid transportation, will further disrupt galvanizing.

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/LME zinc price ratio rebounds to around 6.9 and consolidates [SMM Zinc SHFE/LME Price Ratio Weekly Review]
13 mins ago
SHFE/LME zinc price ratio rebounds to around 6.9 and consolidates [SMM Zinc SHFE/LME Price Ratio Weekly Review]
Read More
SHFE/LME zinc price ratio rebounds to around 6.9 and consolidates [SMM Zinc SHFE/LME Price Ratio Weekly Review]
SHFE/LME zinc price ratio rebounds to around 6.9 and consolidates [SMM Zinc SHFE/LME Price Ratio Weekly Review]
[SHFE/LME price ratio rebounds to around 6.9 and consolidates]: This week, the SHFE/LME price ratio rebounded to around 6.9, with the SHFE and LME price ratio seeing some recovery. Ex-China, US inflation data beat expectations, market expectations for US Fed interest rate hikes heated up, and the US dollar index rose to its highest level since May 2025, weighing on LME zinc.
13 mins ago
Zinc Prices Pull Back, Premiums Rise Accordingly [SMM Tianjin Zinc Spot Weekly Review]
15 mins ago
Zinc Prices Pull Back, Premiums Rise Accordingly [SMM Tianjin Zinc Spot Weekly Review]
Read More
Zinc Prices Pull Back, Premiums Rise Accordingly [SMM Tianjin Zinc Spot Weekly Review]
Zinc Prices Pull Back, Premiums Rise Accordingly [SMM Tianjin Zinc Spot Weekly Review]
[Zinc Prices Pull Back, Spot Premiums Rise]: Spot premiums in Tianjin rose significantly this week, up 30 yuan/mt WoW. As of Friday, mainstream domestic brands were offered at premiums of 0-80 yuan/mt against the 2611 contract, while high-end brands were offered at premiums of 110-180 yuan/mt against the 2611 contract. Tianjin was quoted at a discount of around 35 yuan/mt against Shanghai, narrowing the Shanghai-Tianjin price spread.
15 mins ago
Post-holiday Resumption, Operating Rate Rises [SMM Galvanizing Weekly Review]
17 mins ago
Post-holiday Resumption, Operating Rate Rises [SMM Galvanizing Weekly Review]
Read More
Post-holiday Resumption, Operating Rate Rises [SMM Galvanizing Weekly Review]
Post-holiday Resumption, Operating Rate Rises [SMM Galvanizing Weekly Review]
[Post-holiday work resumption, operating rates rise]: This week, operating rates of galvanising producers rebounded to 53.50%, up 17.24 percentage points WoW. Raw material side, zinc prices fell after the holiday, galvanising enterprises showed improved purchasing enthusiasm, with some enterprises increasing zinc ingot purchases as prices pulled back, replenishing raw material inventories consumed before the holiday.
17 mins ago