Price trend:

Last week, hot rolled coil futures prices fluctuated downwards, leading to a corresponding weakening of sentiment in the spot market. High prices faced downward pressure, and traders gradually lowered their quoted prices. Demand showed a clear seasonal decline, with end-users generally adopting a conservative approach to purchasing, mostly maintaining a just-in-time restocking strategy. Speculative demand weakened significantly, resulting in continued sluggish market transactions. While supply saw a slight reduction, it remained high, hindering inventory reduction and increasing pressure. According to the SunSirs commodity market analysis system, as of November 7th, the average price of galvanized sheet and coil in the domestic market was 4,180.00 RMB/ton, a slight decrease of 0.24% compared to the beginning of the week.

The cost of raw material propylene decreased

Fundamentals: Entering November, with demand gradually weakening, the spot market for galvanized sheets and coils saw relatively sluggish transactions. While supply decreased slightly, it remained at a relatively high level, resulting in slow overall inventory reduction. Merchants were generally cautious, and bargaining was common to facilitate sales. According to the latest data from SunSirs, last week the overall operating rate of galvanized sheets and coils was 79.93%; the capacity utilization rate was 62.69%, a decrease of 0.94% from the week before last; weekly output was 894,200 tons, a decrease of 13,400 tons from the week before last; steel mill inventory was 508,900 tons, an increase of 4,800 tons from the week before last; social inventory was 1,340,400 tons, an increase of 300 tons from the week before last; and total inventory was 1,849,300 tons, an increase of 5,100 tons from the week before last. 

On the demand side, it is understood that the overall order performance of home appliances was poor in November, and the output of some private manufacturers decreased by 30%.

Industry Dynamics: According to the China Construction Machinery Association, in October, the monthly operating rate of major construction machinery products in China was 55%, a year-on-year decrease of 10.1 percentage points and a month-on-month decrease of 0.16 percentage points.

According to preliminary statistics from the China Passenger Car Association, in October, the national retail sales of new energy passenger vehicles reached 1.4 million units, a year-on-year increase of 17% and a month-on-month increase of 8%, with a new energy vehicle retail penetration rate of 58.7%.

Market outlook

Overall, supply is expected to remain high in the short term. Given the slow pace of inventory reduction, SunSirs predicts that galvanized sheet and coil prices will likely continue to fluctuate within a narrow range in the short term.

If you have any inquiries or purchasing needs, please feel free to contact SunSirs with support@sunsirs.com.