SMM March 12 News:
In February, the operating rate in North China rebounded. North China mainly produces galvanized pipes. After the New Year, the resumption progress of infrastructure projects was relatively slow. Although in the first two months of 2025, a total of 1.86 trillion yuan of local government bonds were issued nationwide, a significant increase compared to the same period last year, with the issuance pace clearly advanced, it still takes time to be implemented in the real economy. However, galvanized pipe traders, concerned about tariff issues before the New Year, did not stockpile in large quantities. After the New Year, ferrous metals prices remained stable, and restocking was carried out at an appropriate time. Although end-user resumption was slow, the sales of galvanized pipes were relatively stable, and the operating performance of galvanized pipe enterprises was good, driving the overall operating rate in North China upward.
In February, the operating rate in east China declined. Galvanizing plants in east China mainly focus on producing structural components, but most enterprises in the region are small to medium-sized and generally start operations later, mostly after the Lantern Festival. This resulted in fewer operating days compared to before the holiday. Additionally, some enterprises conducted maintenance after the holiday, delaying production in February and dragging down the operating rate. On the orders side, steel tower enterprises performed better in terms of orders compared to others, but most were pre-holiday orders, and new orders after the holiday still require time. The post-holiday "rush for exports" has basically ended. Overall, the operating rate in east China declined.
In February, the operating rate in South China increased, mainly due to favorable temperatures and less rainfall in the region. Additionally, downstream sectors were concerned about the impact of the rainy season in March on transportation, leading to higher demand. Agricultural management orders also remained strong, boosting production enthusiasm among enterprises and driving the operating rate upward.
Looking ahead to March, downstream enterprises are expected to have certain expectations for March consumption, and production schedules are relatively high. The operating rate in various regions is expected to increase overall in March.
