How Did Galvanizing Perform Across Regions in Q1? [SMM Analysis]

SMM April 18 News: The overall operating rate of galvanizing in Q1 increased, but the performance varied across east China, north China, and south China. What are the reasons? In Q1, the operating rate in north China rebounded rapidly. The region mainly produces galvanized pipes. Infrastructure projects resumed normal operations in March, but galvanized pipe traders, concerned about tariffs, did not stockpile heavily before the new year. After the new year, ferrous metals prices remained stable due to production cuts by steel mills, and traders restocked at a good pace. Overall, the sales of galvanized pipes were relatively stable, and the operating rate of galvanized pipe enterprises improved, driving the overall operating rate in north China upward. In Q1, the operating rate in east China pulled back before rising. Galvanizing plants in east China mainly produce structural components, but most are small and medium-sized enterprises with generally later start-up times. Some companies underwent maintenance after the new year, and production did not resume until February, dragging down the operating rate. In March, new orders for steel towers gradually increased, ship orders remained robust, expected to last until around 2028, and export orders for PV solar panel mounting brackets also performed well, leading to a rebound in the overall operating rate in east China. In Q1, the operating rate in south China showed an overall upward trend, mainly due to favorable temperatures, less rainfall, and minimal impact from the March rainy season. Increased demand boosted production enthusiasm, driving the operating rate upward. Looking ahead to Q2, concerns about the impact of tariffs on overseas export orders squeezing the domestic market and intensifying domestic competition are widespread. However, the market is gradually digesting the 90-day tariff buffer period, and the operating rate remains relatively stable. Some companies have also received a small number of rush export orders. Consumption is expected to pull back in May and June. (The above information is based on market collection and comprehensive evaluation by the SMM research team. The information provided is for reference only. This article does not constitute direct investment research advice. Clients should make decisions cautiously and not use this as a substitute for independent judgment. Any decisions made by clients are unrelated to SMM.) Click to view the SMM Metal Industry Chain Database.