Galvanizers in North China Restart Production after China Environmental Push, SMM Reports

Published: May 23, 2017 17:51
With the ending of environmental protection checks, galvanizers in North China that had cut or ceased production in mid-April returned to production, SMM understands.

SHANGHAI, May 23 (SMM) - With the ending of strict environmental protection checks, galvanizers in North China that had cut or ceased production in mid-April returned to production, SMM understands.

Tianjin Environmental Protection Bureau announced May 19 some large galvanizers are allowed to restart production.

Those that pass environmental impact assessment and have no noticeable environmental protection problems are allowed to restart immediately, while those that pass environmental impact assessment but have environmental protection and safety problems will be allowed to resume production after ratifications.

Zinc to Fluctuate at High Levels This Week, SMM Foresees

Acid-related plants will be allowed to return to production as long as they are recognized by environmental protection bureau and industry and economic committee.

Those that haven’t effluent discharge facility will be allowed to get back to production if they deliver effluent to sewage plant by tank truck with approval of industry parks of villages and towns.

Enterprises involved in dispute will be handled based on decision of Bureau of Supervision of Tianjin.

Here’s Why Zinc Prices Exhibit Excellent Performance, SMM Reports

Galvanizers in Tianjin’s Daqiu Village began to restart production from May 16, SMM learned. 5 local medium and large galvanizers have restarted production. Operating rates at their production lines recovered to 2/3. The other 20 small ones remained closed since they failed to pass environmental assessment. Most galvanizers in Handan and Bazhou have already restarted.

Over 50% of galvanizers in Beijing, Tianjin and Hebei passed environmental assessment with upgrading of environmental protection facility. Although large galvanizers maintained high production, most small galvanizers failed to pass environmental assessment and remained closed. Zinc utilization will thus be affected.

The average operating rate at Chinese galvanizers was 66.9% in April, down 25 percentage points on a yearly basis. The rate will rise to 68% in May after strict environmental protection checks in China, SMM predicts. 

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
[SMM Flash] Russia Lifts Rail Transit Ban on Kazakh Sulfur Exports
27 mins ago
[SMM Flash] Russia Lifts Rail Transit Ban on Kazakh Sulfur Exports
Read More
[SMM Flash] Russia Lifts Rail Transit Ban on Kazakh Sulfur Exports
[SMM Flash] Russia Lifts Rail Transit Ban on Kazakh Sulfur Exports
Russia has officially lifted its rail transport ban on sulfur originating from Kazakhstan transiting through Russian territory for export. The Federal Agency for Railway Transport (Roszheldor) imposed the ban on May 24, 2026, suspending the shipment of Kazakh sulfur to Russian seaports and railway checkpoints. The restriction forced exporters to reroute shipments via alternative corridors, with logistics costs for Tengiz and Kashagan sulfur roughly doubling through the port of Batumi, according to sources. The lifting order was signed on July 24, 2026, following instructions from First Deputy Prime Minister Denis Manturov. Russian Railways (RZD) has notified its subsidiaries to resume accepting railcars carrying Kazakh sulfur, with shipments directed to port stations on the Oktyabrskaya, Severnaya, Kaliningradskaya, Severo-Kavkazskaya, Privolzhskaya and Dalnevostochnaya railways. Kazakhstan is a major sulfur producer and exporter, with annual exports exceeding 4 million tonnes, the bulk of which traditionally flows through Russian ports. The lifting of the ban is expected to restore normal export routes for Kazakh sulfur.
27 mins ago
China's supply-demand imbalance persists, SHFE zinc continues to consolidate at highs [SMM zinc morning comment]
46 mins ago
China's supply-demand imbalance persists, SHFE zinc continues to consolidate at highs [SMM zinc morning comment]
Read More
China's supply-demand imbalance persists, SHFE zinc continues to consolidate at highs [SMM zinc morning comment]
China's supply-demand imbalance persists, SHFE zinc continues to consolidate at highs [SMM zinc morning comment]
[SMM Zinc Morning Comment] Overnight, the most-traded SHFE zinc 2609 contract opened lower with a gap at 24,660 yuan/mt. In early trading, SHFE zinc consolidated around the daily average line, dipping to a low of 24,595 yuan/mt. Subsequently, bears reduced positions, pushing the price up to a high of 24,770 yuan/mt. At the end of the session, gains narrowed and the price maintained a fluctuating trend, finally closing down at 24,720 yuan/mt, down 60 yuan/mt or 0.24%. Trading volume decreased to 51,828 lots, and open interest fell by 2,582 lots to 109,000 lots.
46 mins ago
LME inventory continued to decline, and LME zinc recorded a bearish candlestick [SMM Morning Meeting Minutes]
48 mins ago
LME inventory continued to decline, and LME zinc recorded a bearish candlestick [SMM Morning Meeting Minutes]
Read More
LME inventory continued to decline, and LME zinc recorded a bearish candlestick [SMM Morning Meeting Minutes]
LME inventory continued to decline, and LME zinc recorded a bearish candlestick [SMM Morning Meeting Minutes]
[SMM Morning Meeting Summary: LME Zinc Inventory Continues to Fall, LME Zinc Records a Bearish Candlestick] Overnight, LME zinc opened at $3,611/mt. At the beginning of the session, LME zinc briefly touched a high of $3,611.5/mt, then the price drifted lower all the way, dipping to a low of $3,558/mt during the night session. At the end of the session, LME zinc edged up to recoup some of its losses, finally closing down at $3,567.5/mt, down $47.5/mt or 1.31%. Trading volume increased to 11,890 lots, and open interest rose by 1,807 lots to 251,000 lots.
48 mins ago