2024 Year-End: How Did Galvanizing Perform by Region in December? [SMM Analysis]

SMM News on January 9:

The operating rates of galvanising producers saw a slight increase in December, with overall consumption remaining relatively good. How did the operating rates of galvanising producers perform across different regions?    

In December, the overall operating rate in north China continued to rise. The region mainly produces galvanised pipes. With relatively good weather in the north during December, the completion of infrastructure projects was delayed, and some projects received funding, leading to new project commencements. Under the support of infrastructure, the demand for pipes increased. In December, the prices of ferrous metals remained relatively stable, and end-users gradually stockpiled for the year-end. The shipments of galvanising plants improved significantly, and some small plants conducted pre-holiday stockpiling at month-end. Overall, the operating rate in north China showed an upward trend.

In December, the operating rate in east China also increased. Galvanising plants in east China mainly produce structural components, and steel tower enterprises maintained relatively full orders, sustaining high operating rates. Additionally, influenced by the "Trump 2.0" era, overseas customers, concerned about potential tariff increases, requested earlier delivery times, resulting in a "rush for exports." East China enterprises received a significant number of export orders, driving up the operating rate. In November, the operating rate in south China also increased. With suitable temperatures, enterprises showed higher production enthusiasm. Despite the "north-to-south steel transfer," export orders in the south remained robust, and pipe enterprises saw an increase in orders, pushing up the operating rate.

However, in January, as the Chinese New Year approaches, some enterprises in the north have started to take holidays, and end-users have also gradually ceased operations for the holiday. Enterprises in the south are preparing to take holidays starting mid-January, leading to a noticeable decline in the overall operating rate for January.

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