2026 Galvanizing Industry H1 Review [SMM Analysis]

In H1 2026, the galvanizing industry generally showed characteristics of "slow recovery in Q1 and underperformance in the peak season in Q2," with the overall operating rate weaker than the same period last year.

In Q1, affected by the Chinese New Year holiday, persistently weak ferrous metals prices before the holiday, and insufficient willingness for winter stockpiling, enterprises suspended production and took holidays early. The post-holiday resumption of work and return of workers proceeded at a slow pace, compounded by environmental protection disruptions in the north. Although operations gradually recovered in March, the overall level remained below that of Q1 2025.

In Q2, traditionally a peak consumption season, supported by policy expectations such as the 15th Five-Year Plan, power grid, ultra-high voltage, and underground pipe network construction, the market widely anticipated improved demand. However, actual end-use recovery fell short of expectations. New housing starts remained weak, with only projects ensuring timely delivery of housing projects supporting some rigid demand. The pace of local government special bond fund deployment was slow, and infrastructure project commencement progress lagged expectations; policy benefits had not yet effectively translated into end-use consumption. The industry overall faced a situation where the peak season failed to deliver.

Nevertheless, structural highlights existed within the industry. Project-based orders for steel towers, power grids, solar panel mounting brackets, and export guardrails maintained strong resilience, while traditional demand for construction galvanized sheet and civilian pipes remained sluggish. Overall, in H1, the galvanizing industry’s demand recovery was slow, and the operating rate remained weak on a YoY basis.
2026 H2 Outlook
Looking ahead to H2, the galvanizing industry is expected to follow a trajectory of "weak first, strengthening later, and gradual recovery."
In July–August, constrained by high temperatures and the traditional off-season, real estate and infrastructure construction will still face certain restrictions. The industry operating rate is expected to remain at low levels. As "September peak season" stockpiling begins around month-end August and special bond funds gradually translate into physical workloads, construction of infrastructure projects such as underground pipe networks, power grids, and ultra-high voltage is expected to accelerate, and end-use demand will gradually improve.

After September, as the impact of high temperatures weakens and the traditional peak season arrives, pent-up stockpiling demand and infrastructure construction demand will be released in a concentrated manner, leading to a significant rebound in the industry operating rate. Although real estate is still unlikely to generate significant incremental growth, infrastructure investment, power grid construction, and some export orders will still provide support for the industry. The industry’s prosperity in H2 is expected to improve compared to H1, and the YoY decline in the annual operating rate is expected to narrow continuously.