[concern] once the epidemic led to the collapse of galvanizing consumption, there is still support for non-pessimism in the future!

SMM9 March 24: at present, China's economic development is in a dynamic transformation node, and the development of hot-dip galvanizing in China has entered a new normal stage. Understanding the new normal, adapting to the new normal and leading the new normal is the great logic for the sustained and healthy development of every hot-dip galvanizing enterprise. On the whole, China's galvanizing industry is still in a period of important strategic opportunities that can make great achievements. At the same time, it is also faced with many serious challenges such as superposition of contradictions, weakening downstream demand, increasing pressure on environmental protection, shrinking profit space of the industry, and increasing hidden risks.

Galvanizing refers to the surface treatment technology of plating a layer of zinc on the surface of metal, alloy or other materials to play the role of beauty, anti-rust and so on. The main method used is hot galvanizing, including cold galvanizing and mechanical galvanizing. From the type of galvanized products, it can be divided into galvanized sheet coil and galvanized structural parts. The main terminal flows include infrastructure, real estate, automobile and other fields. Galvanizing accounts for the largest proportion of consumption downstream of zinc, accounting for 65.05%.

The major provinces of zinc consumption in China are still concentrated in the coastal and surrounding areas. North, East and South China contribute mainly to zinc consumption, accounting for more than 80%. Among them, North China is the main distribution area of galvanizing, and Tianjin, as a provincial administrative region and municipality directly under the Central Government, is the economic center of the area around the Bohai Sea approved by the State Council, and it is the central city of galvanizing consumption in the north. There are a large number of galvanizing enterprises in the northern cities. And the country's largest galvanized structural enterprises are located in Tianjin, Hebei and other places. The consumption of galvanizing in North China accounts for about 60.34% of the country's total.

After being hit hard by the epidemic, the start-up rate of galvanizing was only 23.38% in February, the lowest since 2015. Subsequently, the operating rate of galvanizing enterprises continued to rise, surpassing the level of the same period last year since April. The operating rate of galvanizing in August was 99.93%, up 17.82% from the same period last year and 4.53% from the previous month.

"Click to view the SMM zinc industry chain database

At present, the overall performance of galvanizing consumption is stable, and the galvanizing operating rate is expected to be 99.89% in September, down 0.04 percentage points from the previous month.

Mainly because Tianjin Daqiuzhuang environmental protection reform affects Tianjin area consumption, in which the impact of large enterprises is relatively small, but small and medium-sized enterprises need to reduce production to meet environmental standards, which is expected to affect about half a month. In other areas, under the production of terminal projects one after another, it is expected that there will be an increase in order consumption. In the long run, although the epidemic led to the collapse of domestic consumption galvanizing in 2020, it still has strong resilience, mainly due to the support of domestic infrastructure projects in the context of national policy support.

Prospect of galvanizing industry

The epidemic brings great challenges to hot-dip galvanizing enterprises, and most of their profits have been eroded. Perhaps advanced production line equipment and multi-element zinc alloys and environmental protection auxiliaries are a good medicine to speed up the development of enterprises and reduce production costs. Batch galvanizing technology + new technology + new application, promote the rapid development of galvanizing industry!

In addition, the country pays more and more attention to green development, under the heavy pressure of environmental protection, hot-dip galvanizing enterprises how to do a good job in response measures, the first step to face calmly?

With the hot topics concerned by people in these industries, SMM (SMM) will hold the 2020 China International Hot galvanizing Technology and Market Application Development Forum in Tianjin on October 20-21, 2020. Industry experts, enterprise celebrities and senior analysts are invited to make a comprehensive interpretation for you on the spot.

Understand the past, master the present, predict the future, and learn to be advanced!

SMM Hot-dip galvanizing Summit Forum provides you with professional platforms and resources to add impetus to the development of your enterprise!