Since Q1 and Q2, downstream consumption has shown little improvement, with overall demand falling short of expectations. Downstream enterprises in the real estate and infrastructure sectors generally reported poor orders, but steel tower orders have remained strong.
From January to April, major power generation enterprises nationwide completed investments of 191.2 billion yuan in power source projects, up 5.2% YoY. Investments in power grid projects reached 122.9 billion yuan, up 24.9% YoY.
Under the dual-carbon background, the successful commissioning of large wind and solar base projects relies on the grid support provided by power grid companies. The State Grid has always prioritized the construction of UHV projects, and UHV projects remain a key focus in 2024.
For galvanising producers, although the overall operating rates have shown a downward trend, steel tower enterprises have maintained high operating rates. According to an SMM survey, most steel tower orders can extend to Q3, supporting the overall operating rates at galvanising producers. Together with the national investment of over 560 billion yuan in power grids, it is expected that strong orders from steel tower sector will continue.
