Price Analysis

This month, galvanized sheet prices showed a fluctuating downward trend. Market demand remained weak overall, and despite the rise in hot coil futures, spot prices struggled to increase. Although manufacturers actively raised their ex-factory guidance prices, traders had to deepen discounts to clear inventory, resulting in insufficient upward momentum for galvanized sheets. According to SunSirs' commodity market analysis system, as of June 30, the average market price of domestic galvanized sheets was 4,082.50 RMB/ton, a monthly decrease of 1.33%.

Factors Influencing Price Changes

High Supply of Galvanized Sheets

In terms of supply, as of June 27, incomplete statistics show that the operating rate of galvanized sheet manufacturers nationwide was 81.29%, with a capacity utilization rate of 62.92%, down 0.27% from the previous week. Weekly production stood at 897,400 tons, a decrease of 3,900 tons from the prior week. This year, steel mills have increased direct sales to end-users, meaning that while demand in the distribution sector has declined, total orders for mills have not decreased. High supply levels are likely to persist in the second half of the year. The continuous price decline has caused significant losses for traders. Additionally, new galvanized sheet production lines launched in March have exacerbated the oversupply situation.

Inventory-wise, as of June 27, incomplete statistics indicate that galvanized sheet inventory at steel mills nationwide was 477,600 tons, down 3,200 tons from the previous week, while social inventory reached 1.0654 million tons, an increase of 2,700 tons. Most traders currently face limited inventory pressure. On one hand, end-users have shifted toward purchasing on an as-needed basis, reducing traders' stockpiling. On the other hand, prolonged price declines and sustained losses have led to reduced order volumes.

Continued Decline in Downstream Demand

This year, downstream demand has shown a clear and continuous decline. Recent transaction data indicates a month-on-month decrease, and with the onset of rainy and high-temperature weather, demand is expected to weaken further. The traditional off-season effect in July and August may be more pronounced than in previous years. 

According to the latest three major white goods（air conditioners, refrigerators and washing machines) electricity production reports released by Industry Online, the total amount of air ice washing production in July 2025 was 29.6 million units, a decrease of 2.6% compared to the same period last year. In terms of products, the production of household air conditioners in July was 15.8 million units, a decrease of 1.9% compared to the same period last year; The production of refrigerators reached 7.35 million units, a decrease of 2.4% compared to the same period last year; The production of washing machines was 6.445 million units, a year-on-year decrease of 4.2% in production performance compared to the same period last year.

Export Situation

The U.S. Department of Commerce announced that, starting June 23, additional tariffs would be imposed on various steel-based household appliances, including dishwashers, washing machines, and refrigerators—products classified as "steel derivatives."

Future Market Outlook

In summary, July marks the traditional off-season for demand. The order intake pressure faced by steel mills last month has already highlighted market challenges, prompting major mills to introduce order-stimulating policies. SunSirs predicts that galvanized sheet prices may face further downward pressure.

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