Metals News
Holiday impact lowers Jan operating rates at galvanising plants
data analysis
Feb 22,2019

SHANGHAI, Feb 22 (SMM) – Operating rates across galvanising plants in China declined in January as slacker end-market demand shrank orders for galvanised products and plants suspended for the Lunar New Year holiday.

The average operating rate across manufacturers of galvanised sheet/plate, tube/pipe, iron tower and other structures in China fell 25.41 percentage points from a month ago to stand at 52.99% in January, showed an SMM survey.

The rate was 14.1 percentage points up from a year earlier as environmental restrictions deterred production in the north at the start of 2018.

The holiday impact is set to continue to weigh on production of galvanised products this month. Operating rates across galvanising plants in China are estimated to decline 4.11 percentage points month on month and stand at 48.88% in February, 15.17 percentage points higher than the corresponding month last year.

SMM learned that most plants began their holidays from January 25 and some workers left earlier, and that production resumption came around February 14.

As end-market consumption has yet to fully recover, orders for galvanised products were limited this month.

SMM research found that galvanising plants are optimistic about orders in March.

Operating rate
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