2025 Galvanizing Capacity Additions Continue to Increase, Growth Rate Slows Down in 2026[SMM Analysis]

According to SMM, new galvanizing capacity in 2025 is expected to reach 990 kt, mainly involving galvanized pipes, ship parts, angle steel towers, etc. Few new plants are involved, with most being production line additions and business expansions. Against the current backdrop of weak real estate consumption, galvanizing plants are actively seeking new avenues. Looking ahead to 2026, new galvanizing capacity is expected to reach 800 kt. Under the 15th Five-Year Plan, power grid steel tower projects remain a top priority. UHV transmission lines will continue to increase in 2026, and highway and water conservancy projects are expected to grow further. Galvanized consumption in infrastructure projects will see some growth, with new capacity additions mainly focused on infrastructure such as power transmission towers. However, the real estate sector is expected to remain weak, which will somewhat drag on galvanizing demand, leading to a slowdown in new capacity growth in 2026.
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