Review of the Galvanizing Industry in 2025 and Outlook for 2026 [SMM Analysis]

The 2025 calendar year has concluded. Throughout the year, the operating performance of the galvanizing sector was slightly weaker compared to 2024. The operating rate of galvanizing producers peaked in April. Infrastructure saw some growth driven by policy support, and due to tariff influences, some enterprises engaged in a rush to export, leading to a front-loading of consumption. Subsequently, although consumption showed resilience in H2, its performance remained mediocre. As temperatures dropped in December, end-user operations weakened, and galvanizing operating rates also gradually declined. A detailed look at end-use demand follows.

Construction Sector.The domestic real estate market in China was mainly in the doldrums during 2025. Specific data show that national real estate development investment totaled 8,278.8 billion yuan (down 17.2% YoY), completed real estate area reached 603.48 million m² (down 18.1% YoY), and newly started construction area amounted to 587.7 million m² (down 20.4% YoY). As an important downstream consumption area for zinc, the poor performance of construction-related project data continued to drag on orders for domestic galvanized pipes and structural components in 2025.

PV Sector. From January to November 2025, cumulative new PV installations reached 274.89 GW, up 33% YoY. In 2025, the "Notice on Deepening the Market-oriented Reform of New Energy On-grid Tariffs to Promote High-Quality Development of New Energy" is expected to take effect. Under the new policy, newly grid-connected projects after June 1 will fully enter the spot electricity market, where electricity prices are determined entirely by supply and demand, while existing projects connected before that date will still enjoy guaranteed on-grid tariffs. This policy directly triggered an installation rush in the PV industry. New PV installations grew significantly, driving robust demand for galvanizing of solar panel mounting brackets. However, after June, demand gradually pulled back, and orders for galvanized solar panel mounting brackets weakened.

Steel Tower Sector. From January to November 2025, cumulative investment in the power grid reached 560.4 billion yuan, up 16.17% YoY. In line with the West-East Power Transmission and large-scale wind and solar power base projects, ultra-high voltage construction remained a top priority. Tender volumes for ultra-high voltage projects continued to increase compared to 2024, and galvanizing orders for steel towers remained robust.

In 2026, the real estate sector is expected to stop falling and stabilize, and the PV industry will enter a period of steady development. However, there are no significant growth drivers for the galvanizing industry. As 2026 marks the beginning of the 15th Five-Year Plan, State Grid has clarified a new round of major engineering construction tasks. The next step will involve starting construction on key projects such as the Zhejiang Ultra-High Voltage AC Grid Loop, and accelerating the progress of multiple ultra-high voltage and power transmission and transformation projects. State Grid will also ensure the completion of projects such as the Shaanbei–Anhui ultra-high voltage power transmission project. Steel towers will continue to bring some growth to the galvanizing industry.