The "Golden March" Peak Season Is Gradually Expected to Materialize. [SMM Analysis]

As expectations for the peak-season demand in the “Golden March” gradually begin to materialize, galvanizing operating rates are rising. Can downstream consumption sustain its peak-season performance going forward?

By segment:

Galvanized pipes were more significantly affected by ferrous metals. Before the Lunar New Year, as ferrous metals prices kept falling, end-user traders did not carry out large-scale winter stockpiling. After work resumed following the holiday, ferrous metals prices rose, and traders, following the pattern of rushing to buy amid continuous price rise and holding back amid price downturn, restocked in a timely manner. Overall, galvanized pipe shipments were fairly good, and demand improved at the margin. But looking ahead, as traders finish restocking and the release of terminal real estate projects slows down, subsequent demand for galvanized round pipes is not viewed optimistically. However, galvanized square pipes have a broader range of applications, including large machinery, agriculture, and structural uses, and follow-up orders were expected to remain robust.

Within galvanised structures, steel tower orders have still been performing relatively well at present. Current orders are mainly those placed before the Lunar New Year, while a new round of tenders for conventional steel towers and UHV steel towers will begin soon in April. Steel tower orders are accounting for a gradually rising share of galvanizing orders. As for PV orders, due to the large-scale installation rush in 2025, planned new installations for 2026 have declined significantly overall, and orders for solar panel mounting brackets and related products are expected to weaken further. Orders for lamp posts, traffic sign poles, and other products have not shown standout performance so far. But overall order performance has remained resilient.

Export side, galvanizing export orders have been moderate, and there have been many telecommunications and power engineering projects in Africa, Southeast Asia, and other regions, so exports of telecom towers and power steel towers have still been relatively strong. Orders for guardrails and similar products are expected to remain broadly stable overall. This year, geopolitical turmoil has continued unabated, and the closure of the Strait of Hormuz has caused energy shortages in Japan, South Korea, and Southeast Asian countries that rely heavily on Middle Eastern energy. If the energy issue cannot be resolved over the long term, manufacturing in Japan, South Korea, and Southeast Asia will be constrained by energy shortages and may consider increasing imports of galvanised products, which will provide some boost to orders in China. Overall, demand still has certain expectations of improvement.