Price trend

In July, galvanized sheets and coils prices began to rise, driven by favorable macroeconomic news, futures market conditions, and a 100 RMB/ton increase in August ordering policies from major state-owned steel mills. According to the SunSirs’ commodity market analysis system, as of July 30, the average domestic galvanized coil price was 4,322.50 RMB/ton, a 6.20% month-over-month increase.

Factors influencing price fluctuations:

Market merchants generally faced little pressure

On the supply side, judging by the weekly capacity utilization and output of galvanized sheet and coil manufacturers nationwide, the average weekly output of galvanized sheet and coil manufacturers in July was 893,500 tons, a year-on-year increase of 7,200 tons and slightly higher than the same period last year. As of July 25th, according to incomplete statistics, the capacity utilization rate was 80.95%, with a capacity utilization rate of 63.14%, up 0.98% from the previous week. Weekly output was 900,600 tons, an increase of 14,100 tons from the previous week. As of July 30th, galvanized sheet and coil production was still profitable, and no additional production cuts or maintenance were planned for August. Overall, galvanized sheet and coil production in August is expected to be similar to July's month-on-month output, with an average weekly output of approximately 880,000-900,000 tons.

In terms of inventory, overall national galvanized sheet and coil inventories were at a low level over the past two years. As of July 30, the inventory pressure on galvanized sheet and coil vendors remained relatively manageable compared to the same period last year. According to incomplete statistics, as of July 25th, national galvanized sheet and coil inventories reached 1.0788 million tons, a weekly increase of 3,500 tons, a monthly increase of 16,100 tons, and a year-on-year decrease of 163,200 tons. As of July 30, galvanized sheet and coil vendors had limited inventory, but market demand was modest. Coupled with the off-season and high temperatures, downstream customers were less enthusiastic about purchasing. As vendors stock up later, inventory pressure on galvanized sheet and coil vendors may become more pronounced.

In terms of cost, the settlement price of galvanized sheet and coil at major steel mills in Shanghai in July was around 4,070 RMB/ton.

Downstream demand was general

Construction Industry: In the first half of 2025, the construction industry faced severe challenges. Fixed asset investment growth continued to slow, and real estate and infrastructure investment remained underperforming, leading to a general contraction in demand for building materials and a continued decline in industry sentiment. Galvanized steel coils with florid patterns were primarily consumed by the construction industry, with products like air ducts and cable trays being used for newly commenced projects. The sluggish construction industry in the first half of the year significantly impacted demand for these products. Despite rising futures prices, spot market shipments remained weak, lacking actual demand support.

According to the National Bureau of Statistics, from January to June, the floor area of housing under construction by real estate developers reached 633.321 million square meters, a year-on-year decrease of 9.1%. Of this total, the floor area of residential buildings under construction reached 441.240 million square meters, a decrease of 9.4%. The floor area of newly started housing reached 303.64 million square meters, a decrease of 20.0%. Of this total, the floor area of newly started residential buildings reached 222.88 million square meters, a decrease of 19.6%. The floor area of completed housing reached 225.67 million square meters, a decrease of 14.8%. Of this total, the floor area of completed residential buildings reached 162.66 million square meters, a decrease of 15.5%.

Home appliance industry: According to statistics from Aowei Cloud Network, the production schedule for household air conditioners in August 2025 is 11.155 million units, a year-on-year decrease of 7.1%, of which 6.51 million units are for domestic sales, a year-on-year decrease of 5.3%; and 4.645 million units are for export, a year-on-year decrease of 9.5%.

Future outlook:

On the whole, driven by weak market demand, favorable macroeconomic news and futures market, SunSirs predicts that the market price of galvanized sheets and coils may be mainly adjusted in a narrow range in the later period.

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