How Did the Operating Rates of Galvanizing Producers Perform Across Regions in Q1?【SMM Analysis】

SMM April 18 News:
The overall operating rate of galvanizing increased in Q1, but the performance varied across east China, north China, and south China. What are the reasons?
The operating rate in north China rebounded rapidly in Q1. North China mainly produces galvanized pipes. Infrastructure projects resumed normal operations in March, but galvanized pipe traders did not stockpile heavily before the new year due to concerns about tariffs. After the new year, ferrous metals prices remained stable due to production cuts by steel mills, and traders maintained a good rhythm of restocking. 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.
The operating rate in east China pulled back and then rose in Q1. Galvanizing plants in east China mainly produce structural components, but most of them are small and medium-sized enterprises, which generally started operations later. Some companies underwent maintenance after the new year and did not produce in February, dragging down the operating rate. In March, new orders for steel towers were gradually released, and ship orders remained robust, expected to last until around 2028. Export orders for 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, companies are generally concerned that overseas export orders may be affected by tariffs, leading to increased domestic competition. However, the market is gradually digesting the 90-day tariff buffer period, and the current 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.