Decent profits encouraged galvanising plants in China to step up operations

SHANGHAI, Feb 26 (SMM) – Operations across galvanising plants in China further improved this week, as decent profits on galvanised tubes and plates encouraged plants to ramp up production following the return of workers, according to the latest SMM survey.

Most of major galvanising plants in China have reopened this week, and the operating rates increased sharply from last week.

However, most of small plants in north China remain shut due to manpower issues as workers have yet to return. They are expected to reopen in end February to early March.

Logistical constraints lingered as restrictions on trans-provincial transportation in some areas have yet to be lifted, which affected the supply of raw materials to and shipment of finished goods from galvanising plants.

With end-users yet to recover significantly, galvanising plants failed to see a substantial increase in new orders, with orders from municipal projects accounting for the majority.